AXA Investment Managers prices; CLO refinancing pickup eyed; loans post first inflow

By Cristal Cody

Tupelo, Miss., Jan. 10 – AXA Investment Managers, Inc. priced $404 million of notes in a new broadly syndicated CLO offering set to close later in January.

AXA Investment Managers priced $404 million of notes due Jan. 19, 2033 in the Allegro CLO XI, Ltd./Allegro CLO XI LLC deal, according to market sources.

At the top of the capital stack, the CLO sold $228.2 million of class A-1a floating-rate notes at Libor plus 139 bps.

Meanwhile, hints the CLO refinancing market may open up quickly on tighter spreads are surfacing.

“Should AAA refi spreads settle in the 100 [basis points] area, we expect a pickup in refi activity as equity investors take advantage of lower CLO spreads,” Wells Fargo Securities LLC analysts said in a note on Friday.

Based on AAA refinancing spreads of around 100 bps, an estimated $120 billion, or 20%, of U.S. broadly syndicated CLO volume would have AAA’s “in the money” for a reprint based on data from Intex, the analysts said.

In other action, leveraged loans posted the first inflow since February 2019 in the past week ended Wednesday, according to a BofA Securities, Inc. global research note released Friday.

Inflows to loans totaled $470 million, compared to a $370 million outflow a week earlier.

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