NewStar closes NewStar Berkeley Fund CLO; Benefit Street, Symphony, Seix, CSAM price

By Cristal Cody

Eureka Springs, Ark., Nov. 30 – NewStar Financial, Inc. announced on Wednesday that it closed on its previously reported $505.5 million NewStar Berkeley Fund CLO 2016-1 transaction that priced on Oct. 19.

The deal, the Boston-based firm’s third CLO offering of 2016, was upsized from an initial target of $400 million due to strong investor demand, according to the release.

The Berkeley Fund is the fourth credit fund sponsored by NewStar to co-invest in middle market commercial loans originated through its direct lending platform, the company said.

Third-party investors retained the equity interests, which represented about 10.8% of the capital structure, or $54.5 million. NewStar held 5% of each class of notes to satisfy risk retention rules and will serve as manager of the CLO, which has a four-year reinvestment period.

Citigroup Global Markets Inc. was the bookrunner.

“The Berkeley Fund represents another important milestone for our asset management strategy,” Tim Conway, NewStar’s chief executive officer, said in the release.

Conway added that the company’s “investment strategies are defensive, with a focus on 1st lien senior debt, which we believe offers the best combination of yield and position in the capital structure for this stage in the credit cycle. And importantly, we can use our balance sheet to provide risk-retention solutions and pre-ramp portfolios to help investors optimize their returns.”

NewStar Berkeley Fund CLO 2016-1 priced $290 million of class A floating-rate notes at Libor plus 210 basis points in the AAA-rated tranche.

In other activity, details emerged on several new and refinanced transactions priced in the U.S. markets, as well as a new euro-denominated CLO offering.

Benefit Street prices

Benefit Street Partners LLC priced $510.52 million of notes due Jan. 15, 2029 in a new CLO transaction, according to a market source.

Benefit Street Partners CLO X Ltd./Benefit Street Partners CLO X LLC sold $320 million of class A-1 senior secured floating-rate notes at par to yield Libor plus 149 bps in the AAA-rated slice.

Deutsche Bank Securities Inc. arranged the offering.

The transaction is backed primarily by broadly syndicated first-lien senior secured loans.

Benefit Street Partners has priced one new CLO and refinanced one vintage CLO transaction year to date.

The New York City-based credit investment arm of Providence Equity Partners LLC priced three new CLO deals and refinanced one vintage CLO transaction in 2015.

Symphony raises $504 million

Symphony Asset Management LLC sold $504 million of notes due Jan. 23, 2028 in the Symphony CLO XVIII, Ltd. deal, according to a market source.

The CLO priced $310 million of class A senior floating-rate notes at Libor plus 143 bps at the top of the capital structure.

BNP Paribas Securities Corp. arranged the transaction.

The transaction is collateralized primarily by first-lien senior secured loans and eligible investments.

Symphony Asset Management has priced three CLO deals and refinanced one vintage CLO year to date.

The San Francisco-based asset management firm sold one CLO and refinanced one vintage CLO in 2015.

Seix brings $309 million

Seix Investment Advisors LLC priced $309 million of notes in the firm’s first CLO offering of 2016, according to a market source.

Mountain View CLO 2016-1, Ltd./Mountain View CLO 2016-1, Corp. sold $193.5 million of class A floating-rate notes at Libor plus 160 bps at the top of the capital stack.

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

Seix Investment Advisors will manage the CLO.

The CLO manager priced one broadly syndicated CLO in 2015.

The Upper Saddle River, N.J.-based firm is indirectly owned by SunTrust Banks Inc.

CSAM prices €479.14 million

Credit Suisse Asset Management Ltd. priced €479.14 million of notes due Jan. 15, 2030 in a euro-denominated CLO offering, according to a market source.

Cadogan Square CLO VIII BV sold €248.4 million of the class A1 senior secured floating-rate notes at par to yield Euribor plus 96 bps in the senior tranche.

Barclays arranged the transaction.

Credit Suisse Asset Management opened a warehouse collateralized by a portfolio of leveraged loans and high-yield bonds for the transaction earlier in the year.

Credit Suisse Asset Management is a subsidiary of Zurich-based Credit Suisse AG.

AXA sells $405.5 million

AXA Investment Managers, Inc. priced $405.5 million of notes due Dec. 20, 2028 in the Allegro CLO IV, Ltd./Allegro CLO IV LLC offering, according to a market source.

The CLO sold $256 million of class A floating-rate notes at Libor plus 142 bps at the top of the structure.

Goldman Sachs & Co. arranged the offering.

Proceeds will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.

The deal is backed primarily by broadly syndicated first-lien senior secured loans.

The asset management firm, a subsidiary of Paris-based AXA Group, brought one CLO deal in 2014.

BlueMountain refinances CLO

In other action, BlueMountain Capital Management LLC refinanced $412.76 million of notes due Nov. 30, 2026 in the BlueMountain CLO 2014-4 Ltd./BlueMountain CLO 2014-4 LLC transaction, according to a market source.

The CLO priced $301.13 million of class A-1-R senior secured floating-rate notes at Libor plus 135 bps in the senior tranche.

J.P. Morgan Securities LLC was the refinancing agent.

The proceeds from the transaction were used to redeem the original notes on Wednesday.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

BlueMountain Capital Management has priced three new CLOs and refinanced one CLO year to date.

The New York City-based management firm was in the primary market in 2015 with four U.S. CLO deals.

CVC refinances $410 million

CVC Credit Partners, LLC also refinanced $410 million of CLO notes due April 17, 2026 at par in a vintage 2014 transaction, according to a market source.

Apidos CLO XVII/Apidos CLO XVII LLC priced $314 million of senior secured floating-rate notes at Libor plus 131 bps in the class A-1-R tranche.

BofA Merrill Lynch arranged the refinancing.

CVC Credit Partners is the CLO manager.

The CLO manager has priced two new CLOs and refinanced two CLOs year to date.

The New York-based subsidiary of London-based CVC Capital Partners Ltd. placed three new CLO deals and one refinanced CLO in 2015.

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