CSAM reprices $486 million; CELF Advisors to refinance euro CLO; supply slows

By Cristal Cody

Tupelo, Miss., May 17 – In new refinancing activity, Credit Suisse Asset Management, LLC priced $486 million of notes in a second refinancing of a 2015 broadly syndicated CLO deal.

Meanwhile in the European market, CELF Advisors LLP plans to refinance notes from a vintage 2016 CLO offering.

The refinancing space has been active in May in both the dollar-denominated and European markets, sources report.

New issue supply has slowed in May following a “very active” April, Wells Fargo Securities LLC analysts said in a note on Friday.

New issuance was expected to thin in May, but “an ever-growing list of CLO managers, combined with the large amount of equity money raised should lead to continued issuance over the year,” the analysts said. “Ultimately, we believe that while spreads may tighten in the near term, we still see a heavy supply overhang (both new issue and refi/resets) which should limit sustained tightening.”

Year to date CLO issuance is flat year over year but is up 14% based on the deal count, according to the report.

In other activity, leveraged loans had sizable redemptions for the week ended May 15, according to a BofA Merrill Lynch research note released on Friday.

Outflows from loans rose to $550 million from $210 million in the previous week.

CSAM refinances 2015 CLO

Credit Suisse Asset Management priced $486 million of notes due Jan. 24, 2028 in the second refinancing, according to a market source and a notice of executed third supplemental indenture on Thursday.

At the top of the capital stack, Madison Park Funding XIX Ltd./Madison Park Funding XIX LLC priced $396 million of class A-1-R floating-rate notes at Libor plus 125 basis points and $59.8 million of class A-2-R floating-rate notes at Libor plus 175 bps.

MUFG was the refinancing placement agent.

Madison Park Funding XIX was first partially refinanced on March 2, 2018.

In the original $609.75 million deal issued Dec. 29, 2015, the CLO sold $387 million of the class A-1 floating-rate notes at Libor plus 152 bps and $68.8 million of the class A-2 floating-rate notes at Libor plus 230 bps.

Proceeds were used to redeem the outstanding notes.

The CLO manager has priced two new dollar-denominated deals and refinanced one vintage CLO transaction year to date.

Credit Suisse Asset Management is a unit of Credit Suisse Group AG.

CELF to reprice CLO

CELF Advisors plans to refinance notes due Jan. 18, 2030 from the Carlyle Global Market Strategies Euro CLO 2016-2 DAC offering, according to notices to noteholders on Friday.

Carlyle Global Market Strategies Euro CLO 2016-2 will reprice the class A-1 senior secured floating-rate notes at no more than Euribor plus 87 basis points, the class B senior secured deferrable notes at no more than Euribor plus 240 bps, the class C senior secured deferrable notes at no more than Euribor plus 335 bps and the class D senior secured deferrable notes at no more than Euribor plus 615 bps.

The notes will price at least at par.

Merrill Lynch International is the refinancing placement agent.

The original €415 million Carlyle Global Market Strategies Euro CLO 2016-2 DAC transaction was issued Dec. 15, 2016.

Proceeds will be used to redeem the outstanding class A-1, class B, class C and class D notes on June 6.

The deal is collateralized primarily by senior secured loans and senior secured bonds.

London-based CELF is part of the Washington, D.C.-based Carlyle Group LP.

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