AXA Investment eyes $414 million CLO reprint; secondary AAA spreads flat on thin volume

By Cristal Cody

Tupelo, Miss., June 17 – AXA Investment Managers, Inc. plans to price $414 million of notes in a refinancing of a vintage 2016 CLO offering set to close in July.

Refinanced CLO AAA spreads headed out on Friday unchanged on the week on average in the Libor plus 111 basis points area, according to a Wells Fargo Securities, LLC research note released on Monday.

Meanwhile in the primary market, new issue AAA tranches improved about 1 bp from a week earlier to the Libor plus 128 bps area on average.

In the secondary market, broadly syndicated AAA CLO spreads were mostly flat at the Libor plus 113 bps area, the report said.

In is deal, AXA Investment Managers plans to price $414 million of notes in a refinancing of the Allegro CLO IV, Ltd./Allegro CLO IV LLC offering, according to a notice of proposed supplemental indenture.

The deal includes $288 million of class A-R senior secured floating-rate notes (expected ratings Aaa//AAA); $52.65 million of class B-R senior secured floating-rate notes (expected ratings Aa2); $24.75 million of class C-R mezzanine secured deferrable floating-rate notes (expected ratings A2); $27 million of class D-R mezzanine secured deferrable floating-rate notes (expected ratings Baa3) and $21.6 million of class E-R mezzanine secured deferrable floating-rate notes (expected ratings Ba3).

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