Aegon, Tikehau tap U.S., Europe primary markets; Tall Tree, CIFC, BlackRock refinance CLOs

By Cristal Cody

Eureka Springs, Ark., Oct. 17 – New CLO deal issuance continues at a steady pace, while refinancing action has been heavy month to date.

Aegon USA Investment Management LLC priced a $498.48 million new CLO deal.

Tikehau Capital Europe Ltd. brought €414.2 million in the firm’s second euro-denominated CLO offering.

In refinancing action, Tall Tree Investment Management, LLC refinanced $367.5 million of notes from a vintage 2014 CLO.

CIFC Asset Management LLC refinanced $462 million of notes in a vintage 2014 deal.

Also on Monday, BlackRock Financial Management, Inc. closed on the $612 million refinancing of notes in the Magnetite VII, Ltd./Magnetite VII LLC transaction.

“The past three weeks have been CLO refi mania, with 18 CLOs refinancing for $7.7 [billion],” J.P. Morgan Securities LLC analysts said in a note. “The previous two weeks set consecutive records for the busiest in CLO refi activity with $5.06 [billion] and $1.67 [billion] pricing in the weeks ending Oct. 7th and Sept. 30th.”

The wave in refinancing activity can be attributed to equity investors in a “rush to complete transactions before U.S. risk retention takes effect on Dec. 24,” according to a BofA Merrill Lynch note released on Monday.

Aegon prices $498.48 million

Aegon USA Investment Management priced $498.48 million of notes due Oct. 20, 2028 in the Cedar Funding VI CLO Ltd./Cedar Funding VI CLO LLC transaction, according to a market source.

The CLO sold $297.5 million of class A-1 senior secured floating-rate notes at par to yield Libor plus 147 basis points at the top of the capital structure.

Jefferies LLC arranged the transaction.

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

Aegon has priced two new CLOs year to date.

The Cedar Rapids, Iowa-based firm, part of The Hague, Netherlands-based Aegon Group, previously tapped the CLO primary market in 2014.

Tikehau prices €414.2 million

Tikehau Capital Europe sold €414.2 million of notes due Nov. 26, 2029 in the Tikehau CLO II B.V. deal, according to a market source.

Tikehau CLO II priced €244 million of class A senior secured floating-rate notes at par to yield Euribor plus 106 bps in the senior tranche.

Citigroup Global Markets Inc. arranged the offering.

The notes are backed mainly by euro-denominated senior secured obligations.

Proceeds from the transaction will be used to purchase a €400 million portfolio of mostly European leveraged loans and bonds.

Tikehau previously priced one CLO deal in 2015.

The investment firm is based in London.

Tall Tree refinances $367.5 million

Tall Tree Investment Management refinanced $367.5 million of notes due Jan. 25, 2024 at par in a vintage 2014 broadly syndicated collateralized loan obligation, according to a market source.

Lockwood Grove CLO, Ltd. sold $255 million of class A-R floating-rate notes at Libor plus 147 bps in the AAA-rated tranche.

Jefferies LLC was the refinancing agent.

Tall Tree Investment Management manages the CLO.

Tall Tree Investment Management is a Chicago-based investment firm.

CIFC refinances $462 million

CIFC Asset Management refinanced $462 million of notes due Jan. 17, 2027 in a vintage CLO transaction, according to a market source.

CIFC Funding 2014-V, Ltd./CIFC Funding 2014-V, LLC priced $307 million of class A-1-R senior secured floating-rate notes at Libor plus 140 bps in the senior tranche.

Morgan Stanley & Co. LLC was the refinancing agent.

Proceeds from the refinancing were used to redeem the original notes.

CIFC Asset Management is a New York-based credit manager.

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