MJX, Saranac refinance vintage 2013 CLOs; 2015 vintages in focus for refinancing potential

By Cristal Cody

Tupelo, Miss., Aug. 29 – Two more CLO managers refinanced vintage CLO notes.

MJX Asset Management LLC affiliate MJX Venture Management LLC priced $586.25 million of notes in a refinancing and reset of a 2013 deal.

Saranac CLO Management, LLC priced a $354,575,000 refinancing and reset of a 2013 transaction.

More than $117 billion of U.S. CLOs have been refinanced year to date with the bulk in 2014 vintages, according to market sources.

Refinancing vintage 2015 CLOs are expected to be the focus over the remainder of the year with most of the 2014 vintages already refinanced, according to a BofA Merrill Lynch report.

MJX refinances CLO

MJX Venture Management priced $586.25 million of notes in a refinancing and reset of the 2013 Venture XIV CLO, Ltd./Venture XIV CLO, LLC transaction, according to a market source and a notice of executed amended and restated indenture on Monday.

The CLO sold $346 million of class A-R senior secured floating-rate notes at Libor plus 125 basis points in the AAA-rated tranche.

Jefferies LLC arranged the transaction.

The management of the refinanced CLO was transferred to MJX Venture Management from MJX Asset Management.

The original CLO was issued on Aug. 14, 2013.

The maturity was extended by four years to Aug. 28, 2029.

The refinanced CLO has an extended two-year non-call period and four-year reinvestment period.

The New York City-based asset management firm priced three new CLO transactions and refinanced three CLOs in 2016.

Saranac brings CLO reset

Saranac CLO Management priced a $354,575,000 reset of Saranac CLO V Ltd./Saranac CLO V LLC, according to a market source and a notice of executed supplemental indenture No. 1 on Monday.

The CLO sold $222.5 million of class A-R senior secured floating-rate notes at Libor plus 131 bps at the top of the capital stack.

Jefferies was the arranger.

Saranac CLO Management, an affiliate of Canaras Capital Management, LLC, is the CLO manager. Canaras Capital Management is the sub-advisor.

The Saranac CLO V originally was issued on Nov. 26, 2013.

The maturity on the refinanced notes was extended to July 26, 2029 from the original October 2024 maturity. In addition, the non-call period was extended by two years and the reinvestment period by four years.

Canaras Capital Management is a New York City-based investment management firm.

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