ACIS Capital withdraws redemption plans for $424.25 million ACIS CLO 2014-3; secondary active

By Cristal Cody

Tupelo, Miss., Feb. 13 – Refinancing plans were withdrawn for ACIS CLO 2014-3 Ltd./ACIS CLO 2014-3 LLC, according to a regulatory filing on Monday.

The notes were expected to be redeemed on Tuesday after the optional redemption notice was issued Jan. 31.

“The issuer will advise, pursuant to a future issuer order, if and when the supplemental indenture will be executed and the secured notes will be redeemed,” according to the notice.

ACIS Capital Management, LP is the CLO manager.

The $424.25 million CLO was originally issued Feb. 25, 2014.

In January, notice was given that the management of the CLO would be transferred to Highland CLO Management, LLC after the refinancing, and the CLO would be renamed Highland CLO 2014-3R Ltd./Highland CLO 2014-3R LLC.

The transaction was expected to include $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).

The deal also was scheduled to include an additional tranche of $9.5 million of subordinated notes, as well as the existing $39.75 million of subordinated notes. The maturity on the notes was expected to be extended to May 2028 from the original Feb. 1, 2026 maturity.

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

In the original 2014 transaction, the CLO sold $3.5 million of class A-X senior secured floating-rate notes at Libor plus 135 basis points; $205 million of class A-1A senior secured floating-rate notes at Libor plus 151 bps; $25 million of 3.75% class A-1F senior secured fixed-rate notes; $15 million of class A-2A senior secured floating-rate notes at Libor plus 155 bps and $2 million of class A-2B senior secured floating-rate notes at Libor plus 200 bps.

The CLO also sold $56 million of class B senior secured floating-rate notes at Libor plus 223 bps; $29 million of class C deferrable floating-rate notes at Libor plus 250 bps; $19 million of class D deferrable floating-rate notes at Libor plus 312 bps; $17.5 million of class E deferrable floating-rate notes at Libor plus 475 bps; $5 million of class F deferrable floating-rate notes at Libor plus 560 bps and $39.75 million of subordinated notes.

Secondary active

In other activity, the secondary market has been active in mainly senior CLO tranches over the last two sessions, according to a market source.

On Monday, the securitized secondary market saw $114.95 million of investment-grade CBO/CDO/CLO issues and $110.34 million of lower-rated CBO/CDO/CLO securities trade, according to Trace data.

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