Sound Point Capital refinances $489.5 million; interest up in non-high-grade secondary

By Cristal Cody

Eureka Springs, Ark., Jan. 19 – Details emerged on a refinanced CLO offering that first priced in 2014.

Sound Point Capital Management LP sold $489.5 million of notes in the refinancing of the Sound Point CLO V, Ltd./Sound Point CLO V LLC transaction.

In other activity, the securitized secondary market saw $154.1 million of high-grade securities and $363.79 million of non-investment-grade issues traded on Wednesday, according to Trace.

Sound Point refinances CLO

Sound Point Capital Management sold $489.5 million of notes due April 18, 2026 in a refinancing of the Sound Point CLO V transaction, according to a notice of executive supplemental indenture on Wednesday and market sources.

The CLO priced $390 million of class A-R senior secured floating-rate notes at Libor plus 130 basis points in the senior tranche.

Credit Suisse Securities (USA) LLC was the refinancing agent.

Sound Point Capital will continue to manage the CLO.

Proceeds from the refinancing will be used to redeem the original class A, B-1, B-2 and C notes.

The transaction is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.

Sound Point Capital, a New York-based asset management firm, priced three CLO deals in 2016.

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