Sound Point sells $811.9 million CLO, manager’s third deal of 2017; secondary active

By Cristal Cody

Tupelo, Miss., Oct. 6 – Sound Point Capital Management LP priced $811.9 million of notes in the firm’s third new CLO offering of the year.

CLO managers have priced more than $70 billion of broadly syndicated CLOs in 2017, while refinancing volume totals nearly $125 billion year to date.

In other market action, the securitized secondary market has been busy over the week. On Thursday, $161.66 million of high-grade issues and $63.03 million of non-investment-grade securities were traded, Trace reported.

During Wednesday’s session, $79.55 million of investment-grade securities and $623.01 million of non-high-grade CBO/CDO/CLO issues traded.

On Tuesday, trading volume included $124.58 million of high-grade issues and $70.44 million of lower-rated securities.

In Monday’s session, $80.66 million of high-grade CBO/CDO/CLO issues and $79.31 million of non-investment-grade securities traded.

Sound Point Capital Management priced $811.9 million of notes due Oct. 20, 2030 in the new Sound Point CLO XVII, Ltd./Sound Point CLO XVII, Inc. transaction, according to market sources on Friday.

The CLO sold $260 million of class A-1A floating-rate notes at Libor plus 122 basis points at the top of the capital structure.

Citigroup Global Markets Inc. was the placement agent.

Sound Point Capital has priced three new CLOs and refinanced seven vintage CLOs year to date.

The New York-based asset management firm priced three new CLO deals in 2016.

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