BMO Asset Management resets 2015 middle-market CLO; Highland to reprice ACIS CLO 2014-3

By Cristal Cody

Tupelo, Miss., Jan. 12 – BMO Asset Management Corp. priced $362,562,470 of notes in the year’s first refinancing and reset deal, a vintage 2015 middle-market CLO.

In the broadly syndicated refinancing space, Highland CLO Management, LLC is marketing a $375 million refinancing of a CLO that was originally brought to market in 2014 by Acis Capital Management, LP.

In 2017, a record $164 billion of vintage CLOs were refinanced, according to market sources and Prospect News data.

BMO Asset refinances

BMO Asset Management priced $362,562,470 of notes in the refinancing, according to a market source and a notice of revised first supplemental indenture on Thursday.

Great Lakes CLO 2015-1 Ltd. priced $193.3 million of class A-R senior floating-rate notes at Libor plus 153 basis points in the senior tranche.

Citigroup Global Markets Inc. was the refinancing placement agent.

The maturity on the notes was extended to Jan. 16, 2030 from the original July 15, 2026 maturity.

The original $308.4 million CLO was issued on July 30, 2015. The CLO sold $153.75 million of class A-1 floating-rate notes at Libor plus 195 bps.

Proceeds will be used to redeem the original class A-1, A-2, B, C, D, E and F notes on Jan. 16.

BMO Asset Management is a Chicago-based investment management firm and affiliate of BMO Financial Group.

Highland to reprice

Coming up, Highland CLO Management plans to refinance $375 million of notes from the vintage ACIS CLO 2014-3 Ltd. transaction, according to a notice of proposed first supplemental indenture on Wednesday.

The renamed Highland CLO 2014-3R Ltd./Highland CLO 2014-3R LLC offering includes $1.6 million of class X floating-rate notes (AAA expected); $254.7 million of class A-R floating-rate notes (AAA expected); $49.8 million of class B-R floating-rate notes (AA expected); $27.9 million of class C-R floating-rate notes (A expected); $17.9 million of class D-R floating-rate notes (BBB) and $18.1 million of class E-R floating-rate notes (BB expected) and $5 million of class F-R floating-rate notes (B expected).

Mizuho Securities USA LLC is the refinancing placement agent for the Rule 144A and Regulation S deal.

The management of the CLO will be transferred to Highland CLO Management after the refinancing from the original CLO manager, Acis Capital Management.

The maturity on the notes will be extended to February 2028 from the original Feb. 1, 2026 maturity.

The original $416.75 million CLO was issued Feb. 25, 2014.

Proceeds will be used to refinance the original notes.

Highland CLO Management is a Dallas-based asset management firm.

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