Octagon Credit prices new CLO; BlueMountain, MidOcean, Apollo, CVC, KKR refinance deals

By Cristal Cody

Eureka Springs, Ark., Dec. 14 – Details emerged on one new CLO transaction priced in the U.S. primary market and five refinanced U.S. dollar- and euro-denominated CLOs.

More than $25 billion of U.S. CLOs have been refinanced year to date, while European CLO managers have returned to refinance nearly €2 billion of deals this year, according to market sources.

In the new issue market, Octagon Credit Investors, LLC priced $510.75 million of notes in its third new offering of the year.

Looking at refinancing activity, BlueMountain Capital Management LLC refinanced $460.6 million of notes from a 2013 offering.

MidOcean Credit Fund Management LP refinanced $296.4 million of vintage 2012 CLO notes.

In European refinancing action, Apollo Management International LLP refinanced €337.4 million of notes from a vintage 2014 deal.

CVC Credit Partners Group Ltd. priced €333.2 million of notes in a refinancing of its vintage 2014 transaction.

Also, KKR Credit Advisors (Ireland) Unlimited Co. refinanced €276.5 million of notes from a 2013 CLO.

Octagon prices CLO

Octagon Credit Investors priced $510.75 million of notes due Jan. 24, 2028 in the new Octagon Investment Partners 29, Ltd./Octagon Investment Partners 29, LLC CLO offering, according to a market source.

The CLO sold $310 million of class A senior secured floating-rate notes at Libor plus 141 basis points in the AAA-rated tranche.

Credit Suisse Securities (USA) LLC arranged the offering.

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

Octagon Credit Investors has priced three new CLOs and refinanced one vintage CLO year to date.

The New York-based credit investment firm, a subsidiary of Cathay Financial Holding Co. Ltd., priced three CLO transactions in 2015.

BlueMountain refinances

BlueMountain Capital Management refinanced $460.6 million of notes in the BlueMountain CLO 2013-1 Ltd./BlueMountain CLO 2013-1 LLC transaction, according to a market source.

The CLO priced $310 million of class A-1-R floating-rate notes at Libor plus 140 bps in the senior tranche.

Citigroup Global Markets Inc. was the refinancing agent.

The maturity on the refinanced notes was extended to Jan. 20, 2029 from the original May 15, 2025 maturity.

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

Proceeds will be used to redeem the original notes on Friday.

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

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

MidOcean refinances 2012 CLO

MidOcean Credit Fund Management refinanced $296.4 million of 2012 CLO notes due Jan. 15, 2024, according to a market source.

MidOcean Credit CLO I/MidOcean Credit CLO I LLC sold $210.5 million of class A-1-R floating-rate notes at Libor plus 145 bps at the top of the capital stack.

Citigroup Global Markets was the refinancing agent.

Proceeds will be used to redeem the original notes on Thursday.

The affiliate of New York City-based private equity firm MidOcean Partners has priced two new CLOs and refinanced one CLO transaction year to date.

Apollo refinances CLO

Apollo Management International refinanced €337.4 million of notes from a vintage 2014 euro-denominated CLO transaction, according to a market source.

ALME Loan Funding II DAC priced the €224 million tranche of class A-R senior secured floating-rate notes at Euribor plus 100 bps.

The maturity on the refinanced notes was extended to Jan. 15, 2030 from the original Jan. 15, 2027 due date.

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

The transaction is predominantly backed by senior secured obligations.

Proceeds from the refinancing will be used to redeem the original tranches.

The London-based investment firm has priced one new euro-denominated CLO and refinanced one CLO transaction year to date.

CVC refinances €333.2 million

CVC Credit Partners Group priced €333.2 million of notes due July 8, 2027 in a refinancing of the vintage 2014 CVC Cordatus Loan Fund III DAC transaction, according to a market source.

The CLO sold €235.5 million of class A-1-R senior secured floating-rate notes at Euribor plus 87 bps in the AAA-rated slice.

Citigroup Global Markets was the refinancing agent.

Proceeds from the deal will be used to redeem the original notes.

The CLO is backed primarily by euro-denominated senior secured loans and eligible investments.

CVC Credit Partners has priced two new European CLO offerings and refinanced one CLO deal in 2016.

The credit management arm of London-based private equity firm CVC Capital Partners Ltd. brought one euro-denominated CLO transaction in 2015.

KKR refinances Avoca CLO X

KKR Credit Advisors (Ireland) sold €276.5 million of notes in a Rule 144A- and Regulation S-eligible refinancing of the 2013 vintage Avoca CLO X Ltd. CLO deal, according to a market source.

The renamed Avoca CLO X DAC priced €185 million of senior secured floating-rate notes (Aaa//AAA) at Euribor plus 91 bps in the class A-R tranche.

Credit Suisse Securities (Europe) Ltd. was the deal arranger.

KKR Credit Advisors (Ireland), formerly known as Avoca Capital Holdings, will manage the CLO.

The maturity on the new notes was extended to Jan. 15, 2030 from the original Jan. 15, 2026 maturity.

The CLO is backed primarily by senior loans, senior secured bonds, corporate rescue loans, mezzanine obligations and high-yield bonds managed by KKR Credit Advisors (Ireland).

Proceeds will be used to redeem the existing notes.

KKR Credit Advisors (Ireland) has brought one new and one refinanced euro-denominated CLO deal to market in 2016.

The Dublin-based credit investment management firm priced two CLO transactions in 2015.

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