Sound Point prices €421.1 million CLO; Mariner plans refinancing; primary spreads firm

By Cristal Cody

Tupelo, Miss., Feb. 5 – Euro-denominated supply continued with a €421.1 million broadly syndicated CLO from Sound Point Capital Management LP.

At the start of the week, GLG Partners LP priced the €352.78 million Man GLG Euro CLO VI DAC transaction.

The euro-denominated market has been active with other CLOs priced at the end of January from Investcorp Credit Management EU Ltd., Partners Group (UK) Management Ltd. and Accunia Fondsmaeglerselskab A/S totaling more than €1 billion.

Meanwhile, the refinancing space also remains active in early 2020.

Mariner Investment Group, LLC plans to price a second refinancing of a vintage 2016 broadly syndicated CLO.

More than $4 billion of CLOs have priced year to date, while nearly $1 billion of vintage CLOs have been refinanced, reset or reissued, according to a Wells Fargo Securities research note.

“The pace of refis/resets/reissues is down [month over month], but we expect it to pick up in February given tightening spreads,” Wells Fargo analysts said in the note.

New issue AAA-rated spreads improved an average 7 basis points in January to Libor plus 126 bps, the analysts said.

Primary BBB spreads tightened 40 bps month over month to Libor plus 310 bps.

Refinanced AAA spreads are an average 2 bps tighter from a month ago at Libor plus 99 bps.

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