Elevation CLO 2013-1 to add loans, new manager to refinanced offering

By Cristal Cody

Tupelo, Miss., Aug. 9 – The Arrowpoint CLO 2013-1 Ltd./Arrowpoint CLO 2013-1 LLC transaction will be refinanced and renamed Elevation CLO 2013-1, Ltd./Elevation CLO 2013-1, LLC as previously reported with some changes, according to a notice of revised proposed fourth supplemental indenture on Thursday.

The deal will include a tranche of loans.

The CLO intends to price class X notes (expected ratings AAA), class A-L loans (expected ratings AA), class B-R2 notes (expected ratings A), class C-R2 notes (expected ratings BBB-) and class D-R2 notes (expected ratings BB-).

The refinancing previously was expected to include class X notes, class A-1-R2 notes, class A-2-R2 notes, class B-R2 notes, class C-R2 notes and class D-R2 notes.

Goldman Sachs & Co. is the refinancing placement agent.

The CLO manager of the refinanced CLO will be 325 Fillmore LLC instead of ArrowMark Colorado Holdings LLC, or Arrowpoint Asset Management LLC, as previously announced.

PGIM, Inc. is the designated successor manager.

The CLO will have extended non-call and reinvestment periods, as well as an extended maturity.

Arrowpoint CLO 2013-1 was originally issued on April 25, 2013.

The CLO was first refinanced in a $331.2 million offering of notes due Nov. 15, 2028 on Nov. 25, 2016.

In the first refinancing, the CLO had priced $225.72 million of class A-1R floating-rate notes at Libor plus 152 basis points; $44.28 million of class A-2R floating-rate notes at Libor plus 215 bps; $26.28 million of class B-R deferrable floating-rate notes at Libor plus 295 bps; $16.92 million of class C-R deferrable floating-rate notes at Libor plus 468 bps and $18 million of class D-R deferrable floating-rate notes at Libor plus 771 bps.

Proceeds from the transaction will be used to redeem the outstanding notes on Aug. 15.

The CLO is backed primarily by broadly syndicated senior secured corporate loans.

In 2018, ArrowMark priced two new CLOs and refinanced one vintage CLO.

325 Fillmore is an investment management firm based in Denver.

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