Octagon sells $511.2 million CLO, refinances vintage deal; Alcentra, NXT Capital reprice CLOs

By Cristal Cody

Tupelo, Miss., Jan. 23 – The CLO market is beginning to see new issuance with a 511.2 million transaction from Octagon Credit Investors, LLC.

Octagon also sold $738.3 million of notes in a second refinancing of a vintage 2014 CLO.

In other refinancing activity, Alcentra NY, LLC priced $546.25 million of notes in a reset of a vintage 2013 CLO.

Also, NXT Capital LLC subsidiary NXT Capital Investment Advisers LLC refinanced $321 million of notes from a vintage 2015 middle-market CLO.

Octagon prices new CLO

Octagon Credit Investors priced $511.2 million of notes due Jan. 20, 2031 in the new Octagon Investment Partners 35, Ltd./Octagon Investment Partners 35, LLC transaction, according to a market source.

The CLO sold $290 million of the class A-1a floating-rate notes at Libor plus 106 basis points.

BofA Merrill Lynch arranged the offering.

In 2017, Octagon Credit Investors priced four new CLOs and refinanced notes from seven vintage CLOs.

The CLO manager priced three new CLOs and refinanced one CLO in 2016.

The New York-based credit investment firm is a subsidiary of Conning & Co.

Octagon refinances CLO

Octagon Credit Investors also priced $738,368,750 of notes in a second refinancing of the 2014 vintage Octagon Investment Partners XXII, Ltd./Octagon Investment Partners XXII, LLC transaction, according to a market source and a notice of executed second supplemental indenture on Monday.

The CLO priced the $424.4 million tranche of class A-RR senior secured floating-rate notes at Libor plus 107 bps.

Morgan Stanley & Co. LLC was the refinancing placement agent.

The maturity on the reset CLO was extended to Jan. 22, 2030 from the original Nov. 25, 2025 maturity.

The original $722.2 million transaction was issued on Nov. 25, 2014. The notes were refinanced for the first time on June 9, 2017.

Alcentra reprices

Alcentra NY priced $546.25 million of notes in a refinancing and reset of the Shackleton 2013-III CLO, Ltd./Shackleton 2013-III CLO LLC deal, according to a market source and a notice of executed second supplemental indenture.

Shackleton 2013-III CLO sold $303 million of class A-R senior term floating-rate notes at Libor plus 112 bps at the top of the capital stack.

MUFG was the refinancing placement agent.

The maturity on the notes was extended to July 15, 2030 from the original April 15, 2025 maturity.

Alcentra refinanced three vintage CLOs in 2017.

The New York-based firm is part of BNY Alcentra Group Holdings, Inc.

NXT refinances CLO

In other refinancing action, NXT Capital Investment Advisers priced $321 million of notes due April 21, 2027 in a refinancing of a 2015 middle-market CLO offering, according to a market source and a notice of executed first supplemental indenture on Monday.

NXT Capital CLO 2015-1 LLC priced the $219.5 million of class A-R senior secured floating-rate notes at Libor plus 115 bps.

Wells Fargo Securities LLC arranged the deal.

NXT Capital originally issued the notes on May 13, 2015.

The CLO manager priced one new CLO and refinanced one vintage CLO in 2017.

The middle-market lending and financial services firm is based in Chicago.

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