CLO reissues pick up; Ivy Hill eyes middle-market reset; Bain Capital, TPG on tap

By Cristal Cody

Tupelo, Miss., July 6 – Heavy refinancing activity is expected by market sources in July, while details emerged on several CLO reissues in the works.

Ivy Hill Asset Management, LP plans to price $391.96 million of notes in a refinancing and reset of a vintage 2015 middle-market CLO.

Bain Capital Credit Ltd. plans to price $405.35 million of notes in a refinancing of a 2016 broadly syndicated CLO.

Also, TPG Institutional Credit Partners, LLC is on deck to refinance $412.37 million of notes in a reset of the TICP CLO V Ltd. broadly syndicated CLO transaction on July 17 via Mizuho Securities USA Inc., according to a market source. The Fort Worth, Texas-based private equity firm originally issued $410.25 million of notes in the offering on July 17, 2016.

About $80 billion of vintage CLOs have been refinanced in the first half of the year, according to market sources.

In other activity, secondary trading was thin with the markets partially closed over the week.

In the U.S. securitized secondary market, trading volume was too light to register on Thursday after the markets returned from the Independence Day holiday.

On Monday, $36.38 million of investment-grade CDO/CBO/CLO issues and $17.83 million of lower-rated securities traded, while trading volume over the short session on Tuesday included $19.11 million of high-grade bonds and $6.18 million of lower-rated issues, according to Trace data.

Ivy Hill to reprice 2015 CLO

Ivy Hill Asset Management plans to price $391.96 million of notes in a refinancing and reset of the Ivy Hill Middle Market Credit Fund X, Ltd. transaction, a source said.

The Ivy Hill Middle Market Credit Fund X deal includes $2 million of class X-R floating-rate notes (AAA); $221.4 million of class A-1a-R floating-rate notes (AAA); $14 million of class A-1b-R floating-rate notes (/non-rated/); $28.3 million of class A-2-R floating-rate notes (AA); $33.3 million of class B-R floating-rate notes (A); $13.9 million of class C-R floating-rate notes (BBB-); $25 million of class D-R floating-rate notes (BB-) and $54.06 million of subordinated notes.

Natixis Securities Americas LLC is the refinancing placement agent.

The maturity on the notes, originally due July 24, 2027, will be extended to July 18, 2030.

The CLO was originally issued in a $384.65 million transaction on July 24, 2015.

Proceeds will be used to redeem the original notes on July 18.

The deal is backed by senior secured loans to middle market obligors.

Ivy Hill is a New York-based subsidiary of Ares Capital Corp.

Bain Capital remarkets CLO

Bain Capital Credit plans to price $405.35 million of notes in a refinancing of the vintage 2016 Race Point X CLO, Ltd. deal, according to a market source.

The offering includes $235 million of class A-1-R floating-rate notes (Aaa/AAA); $22 million of class A-2-R floating-rate notes (Aaa); $48 million of class B-R floating-rate notes (AA); $23 million of class C-R floating-rate notes (A); $24 million of class D-R floating-rate notes (BBB-); $15 million of class E-R floating-rate notes (BB-); $7 million of class F-R floating-rate notes (B-) and $31.35 million of subordinated notes.

Citigroup Global Markets Inc. is the refinancing agent.

The maturity on the notes will be extended to July 25, 2031 from the original July 25, 2028 maturity.

Bain Capital originally priced $401.85 million of notes in the offering that was issued May 25, 2016.

Proceeds from the refinancing will be used to redeem the original notes on July 25.

The CLO is backed primarily by broadly syndicated senior secured loans.

Bain Capital Credit is an asset management firm based in Boston.

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