Steele Creek sells new CLO; Voya, Neuberger, MidOcean refinance; CreekSource sets talk

By Cristal Cody

Tupelo, Miss., April 3 – The CLO new issue market remains active, while action is heating up in the refinancing space.

Steele Creek Investment Management LLC tapped the CLO primary market with a new $409.6 million offering in the manager’s first deal since 2016.

Details also emerged on several CLO refinancing and reset transactions, while one CLO manager intends to reprice a 2015 CLO this week.

Voya Alternative Asset Management LLC priced $455.15 million of notes in a refinancing and reset of a 2013 CLO.

Neuberger Berman Loan Advisers LLC sold $370 million of notes in a refinancing of a 2016 transaction.

MidOcean Credit Fund Management LP priced $368.5 million of notes in a refinancing of a 2015 CLO.

More than $27 billion of CLOs have been refinanced year to date, according to market sources.

CreekSource LLC gave guidance on Tuesday on a planned $305.7 million CLO refinancing. The firm expects to reprice notes from a 2015 CLO.

Steele Creek prices

Steele Creek Investment Management priced $409.6 million of notes due April 15, 2031 in the CLO, according to a market source.

Steele Creek CLO 2018-1 Ltd./Steele Creek CLO 2018-1, LLC sold $260 million of class A floating-rate notes at Libor plus 101 basis points in the senior slice.

BNP Paribas Securities Corp. was the placement agent.

Steele Creek Investment Management was last in the CLO primary market with one transaction in 2016.

The Charlotte, N.C.-based asset management firm is a subsidiary of global advisory firm Moelis & Co. LLC.

Voya sells $455.15 million

Voya Alternative Asset Management priced $455.15 million of notes in a refinancing and reset of a 2013 vintage CLO, according to a market source and a notice of executed first supplemental indenture.

Voya CLO 2013-2, Ltd./Voya CLO 2013-2 LLC sold $286.25 million of class A-1-R floating-rate notes at Libor plus 97 bps in the AAA-rated tranche.

Credit Suisse Securities (USA) LLC arranged the offering.

The maturity on the notes was extended to April 25, 2031 from the original April 25, 2025 maturity.

The original $470.25 million CLO was issued on April 25, 2013 as ING IM CLO 2013-2 Ltd. The name was changed in 2014.

The transaction included $297 million of class A-1 floating-rate notes priced at Libor plus 115 bps.

Voya has priced one new CLO and refinanced one vintage CLO year to date.

The CLO manager priced four new CLOs and refinanced three vintage CLOs in 2017.

The firm is an affiliate of New York City-based Voya Investment Management LLC.

Neuberger Berman prices

Neuberger Berman Loan Advisers sold $370 million of notes due April 20, 2027 in a refinancing of the vintage 2016 Neuberger Berman Loan Advisors CLO XXI, Ltd./Neuberger Berman Loan Advisors CLO XXI, LLC transaction, according to market sources and a notice to CLO noteholders.

The CLO priced $247 million of class A-1-R senior secured floating-rate notes at Libor plus 75 bps at the top of the capital stack.

Morgan Stanley & Co. LLC arranged the transaction.

The original $361.5 million CLO priced on Feb. 24, 2016. The CLO sold $223.2 million of the class A senior secured floating-rate notes at Libor plus 155 bps.

The Chicago-based firm is part of Neuberger Berman Group, LLC.

MidOcean reprices CLO IV

MidOcean Credit Fund Management priced $368.5 million of notes due April 15, 2027 in a first refinancing of a vintage 2015 CLO deal, according to a market source and a notice of revised proposed first supplemental indenture on Monday.

MidOcean Credit CLO IV/MidOcean Credit CLO IV LLC placed $251.5 million of class A-R floating-rate notes at Libor plus 80 bps in the senior tranche.

Barclays was the refinancing placement agent.

The $411 million CLO originally was issued on March 12, 2015. The CLO had priced $251.5 million of class A floating-rate notes at Libor plus 155 bps.

The affiliate of New York City-based private equity firm MidOcean Partners priced one new CLO and refinanced one CLO transaction in 2017.

CreekSource offers CLO

Coming up, CreekSource intends to price $305.7 million of notes with a 13-year maturity in a refinancing and reset of the vintage 2015 Bean Creek CLO, Ltd./Bean Creek CLO LLC deal this week, according to a news release on Tuesday.

The $3 million of class X-R floating-rate notes (Aaa expected) were talked to price at Libor plus 60 bps, while the $196.5 million tranche of class A-R floating-rate notes (Aaa expected//AAA expected) was talked to price in the Libor plus 100 bps to 102 bps area.

The $31.5 million of class B-R floating-rate notes (Aa2 expected) were talked to price in the Libor plus 140 bps to 145 bps area.

CreekSource talked the $18 million of class C-R floating-rate notes (A2 expected) to price in the Libor plus 185 bps to 190 bps area.

Price guidance on the $17.25 million of class D-R floating-rate notes (Baa3 expected) was in the Libor plus 260 bps to 265 bps area.

In the final tranche, the $12.75 million of class E-R floating-rate notes (Ba3 expected) were talked to price in the Libor plus 565 bps to 575 bps area.

The deal includes $26.7 million of subordinated notes.

Barclays is the arranger.

Bean Creek CLO originally priced $305 million of notes due Jan. 20, 2028 in the offering on Dec. 1, 2015.

CreekSource is an affiliate of Carmel, Ind.-based investment management firm 40|86 Advisors, Inc.

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