Romark prices CDO; Bain, MidOcean refinance; MJX plans reprint; refinancing supply eyed

By Cristal Cody

Tupelo, Miss., Feb. 21 – In new securitized supply, Romark Credit Advisors LP priced a $388 million CDO transaction.

Meanwhile in the CLO market, Bain Capital Credit Ltd. sold $606.2 million of notes in a second refinancing of a 2013 CLO.

MidOcean Credit Fund Management LP priced $489 million of notes in a refinancing of a 2017 CLO.

Coming up, MJX Asset Management LLC affiliate MJX Venture Management LLC plans to sell $457.5 million of notes in a second refinancing of a vintage 2013 CLO.

U.S. CLO refinancing activity remains strong despite a lower spread reduction, according to a Fitch Ratings report on Friday.

The difference between average new and refinanced broadly syndicated CLO AAA notes is at “the widest it has been since YE 2017,” Fitch said.

“There are at least 14 CLOs expected to refinance ‘AAAsf’ notes in first-quarter 2020 and these averaged 105 [basis points], while new and reissue senior-most notes that we expect to price averaged 129 bps,” Fitch said.

In the first quarter of 2019, just two refinancing transactions were brought with three seen on average per month in 2019, according to the report.

Elsewhere, outflows from leveraged loans increased over the past holiday-shortened market week ended Wednesday to $230 million from $120 million in the prior week, according to a BofA Securities, Inc. research note released on Friday.

Romark prices $388 million

Romark Credit Advisors sold $388 million of notes due April 28, 2038 in the CDO transaction, according to a market source.

Romark Credit Funding I, Ltd. priced $171.1 million of 3.57% class A senior secured fixed-rate notes in the AAA-rated tranche.

GreensLedge Capital Markets LLC was the placement agent.

The CDO is collateralized primarily by corporate bonds and loans.

Romark is an affiliate of New York-based investment firm Shenkman Capital Management, Inc.

Bain sells $606.2 million

Bain Capital Credit priced $606.2 million of notes due Feb. 20, 2030 in a second refinancing of the Race Point VIII CLO Ltd./Race Point VIII CLO Corp. offering, according to market sources.

The CLO sold $427 million of class A-R2 floating-rate notes at Libor plus 104 bps in the senior tranche.

Citigroup Global Markets Inc. arranged the refinancing.

Race Point VIII originally was issued in February 2013 and was first refinanced in a $684.4 million transaction on Feb. 21, 2017.

The CLO is backed primarily by broadly syndicated loans.

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

MidOcean refinances

MidOcean Credit Fund Management priced $489 million of notes due July 15, 2029 in a refinancing of the MidOcean Credit CLO VII/MidOcean Credit CLO VII LLC deal, according to a market sources and a notice of executed second supplemental indenture on Thursday.

MidOcean Credit CLO VII sold $378 million of class A-1-R floating-rate notes at Libor plus 104 bps at the top of the capital stack.

Morgan Stanley & Co. LLC was the refinancing placement agent.

The original $613.5 million transaction was issued on July 6, 2017.

The CLO is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.

The manager is an affiliate of New York City-based private equity firm MidOcean Partners.

MJX offers $457.5 million

MJX Venture Management plans to price $457.5 million of notes due Sept. 10, 2029 in a second refinancing of the Venture XIII CLO, Ltd./Venture XIII CLO, LLC offering, according to a notice of proposed supplemental indenture on Thursday.

The deal includes $362.5 million of class A-R2 senior secured floating-rate notes (expected rating Aaa), $61 million of class B-R2 senior secured floating-rate notes (expected rating Aa2) and $34 million of class C-R2 mezzanine secured deferrable floating-rate notes (expected rating A1).

Goldman Sachs & Co. LLC is the refinancing placement agent.

The original $600 million CLO was issued on March 25, 2013 and was first refinanced on Sept. 17, 2017 in a $593 million transaction.

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

MJX is an asset management firm based in New York City.

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