Barings, CIFC, Och-Ziff refinance 2014 CLOs; non-high-grade secondary volume higher

By Cristal Cody

Eureka Springs, Ark., Jan. 10 – While the CLO primary market remains quiet so far in 2017, refinancing action has kicked off in the new year.

Barings LLC, formerly known as Babson Capital Management LLC, refinanced $569.75 million of notes in a vintage 2014 CLO deal.

Also in the past week, CIFC Asset Management LLC and Och-Ziff Loan Management LP have refinanced vintage 2014 CLOs, a source said. Final pricing details were not immediately available.

In the European market just before the Christmas holiday break, Barings (UK) Ltd. refinanced €281.75 million of notes in a 2014 euro-denominated CLO.

Looking at the secondary market, higher trading volume was seen in non-investment-grade securitized issues versus high-grade securities on Monday.

The session saw $156.45 million of non-investment-grade securities trade, compared to $44 million of high-grade CBO/CDO/CLO issues, according to Trace.

In its deal, Barings sold $569.75 million of notes due Jan. 15, 2026 in a refinancing of the Barings CLO Ltd. 2014-III transaction, according to a market source.

The CLO sold $426.25 million of class A-R notes; $49 million of class B-1-R notes; $40 million of class B-2-R notes; $41.5 million of class C-1-R notes and $13 million of class C-2-R notes.

Final pricing details were not available by press time.

Morgan Stanley & Co. LLC was the refinancing agent.

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

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