Elmwood resets $463.75 million CLO; Voya refinances $31.48 million notes; primary active

By Cristal Cody

Tupelo, Miss., Oct. 19 – October collateralized loan obligation supply is remaining steady in both the new issue market and the refinancing space.

Elmwood Asset Management LLC priced $463.75 million of notes in a refinancing and reset of a vintage 2019 broadly syndicated CLO.

Voya Alternative Asset Management LLC priced $31.48 million of notes in a third partial refinancing of a vintage 2012 broadly syndicated CLO offering.

Voya Alternative Asset Management also refinanced $22.5 million of notes from a vintage 2018 broadly syndicated CLO, as previously reported.

More than $60 billion of dollar-denominated broadly syndicated CLOs have priced in the primary market this year, in addition to about $30 billion of refinanced CLO notes, according to market sources.

The new issue space remains strong in October, Wells Fargo Securities, LLC analysts said in a report on Monday.

“After September’s issuance (the highest monthly issuance total since April 2019), CLO investors continue to see a heavy supply of primary volume,” the analysts said. “Despite the holiday shortened week, managers priced $3.2 billion in new issue, bringing month to date volume to $5.9 billion.”

U.S. CLO spreads were mostly unchanged over the past week and are wider since the end of September, according to the note.

“In general, CLO investors still have money to put to work but seem to lack conviction, largely due to the looming U.S. election,” the Wells Fargo analysts said. “Additionally, we believe heavy primary supply has led to a sense of investor fatigue.”

Elmwood refinances

Elmwood Asset Management priced $463.75 million of notes in a refinancing and reset of the 2019 CLO, according to market sources.

Elmwood CLO I Ltd. sold $300 million of class A-R floating-rate notes at Libor plus 145 basis points at the top of the capital structure.

Citigroup Global Markets Inc. was the refinancing agent.

In the original $499.4 million transaction issued March 21, 2019, the CLO priced $330 million of the class A floating-rate notes at Libor plus 135 bps.

The maturity on the notes will be extended to Oct. 20, 2033 from the original April 20, 2030 maturity.

The CLO is backed primarily by broadly syndicated first-lien senior secured loans.

Elwood Asset Management is a New York-based hedge fund created in 2018.

Voya sells fixed-rate notes

Voya Alternative Asset Management priced $31.48 million of notes due Oct. 15, 2030 in a third partial refinancing of a vintage 2012 broadly syndicated CLO offering, according to market sources.

Voya CLO 2012-4, Ltd./Voya CLO 2012-4 LLC sold $14.98 million of 1.863% class A-1b-R-R-R secured fixed-rate notes (AAA) in the AAA-rated tranche.

BNP Paribas Securities Corp. was the refinancing agent.

The CLO was originally issued on Nov. 29, 2012 and was previously refinanced on Sept. 22, 2016 and Nov. 5, 2019.

In the 2019 refinancing, the CLO had priced $15 million of 2.764% class A-1-b-R-R fixed-rate notes.

The CLO is backed mainly by broadly syndicated first-lien senior secured loans.

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

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