New CLO issuance active; Sound Point Capital refinances $456.5 million 2013 CLO notes

By Cristal Cody

Tupelo, Miss., May 4 – While refinancing action in the collateralized loan obligation market continues to outpace new issuance, the primary market also remains active.

CVC Credit Partners, LLC sold $511.75 million of notes in a new CLO offering via Credit Suisse Securities (USA) LLC, according to a market source. Final pricing details were not available by press time.

More than $21 billion of new CLOs have priced in 2017, according to market sources.

In refinancing action, Sound Point Capital Management LP detailed its $456.5 million refinancing of notes from the Sound Point CLO IV, Ltd./Sound Point CLO IV, Inc. transaction.

Nearly $70 billion of U.S. CLOs have been refinanced year to date.

Sound Point Capital Management refinanced $456.5 million of notes due Jan. 21, 2026 from Sound Point CLO IV, according to details from a notice of executed second supplemental indenture.

The CLO sold $390 million of class A-R senior secured floating-rate notes at Libor plus 110 basis points in the senior tranche.

Morgan Stanley & Co. LLC arranged the deal.

Sound Point Capital will continue to manage the CLO.

In the original transaction priced in December 2013, the CLO sold $390 million of class A senior floating-rate notes at Libor plus 137 bps.

Proceeds from the refinancing were used to redeem the original class A, C and D notes.

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

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