ArrowMark refinances 2018 CLO fixed-rate notes; securitized secondary market active

By Cristal Cody

Tupelo, Miss., Sept. 22 – CLO fixed-rate refinancing activity is continuing at a steady pace in September.

ArrowMark Colorado Holdings LLC repriced the fixed-rate tranche of senior secured notes from a 2018 broadly syndicated CLO in an offering that closed on Tuesday.

More than $28 billion of vintage CLOs have been refinanced year to date, while over $51 billion of new issues have priced, market sources report.

Looking at the secondary market, activity was steady to start the week with $303.99 million of high-grade CBO/CDO/CLO notes and $119.82 million of lower-rated issues traded on Monday, according to Trace data.

The investment-grade CBO/CDO/CLO paper traded at an average 98.10, while non-high-grade issues averaged 74.40 on Monday.

ArrowMark refinances

ArrowMark Colorado Holdings sold $12.88 million of notes due July 15, 2031 in a partial refinancing of the Elevation CLO 2018-9, Ltd./Elevation CLO 2018-9 LLC offering, according to market sources.

Elevation CLO 2018-9 priced $12.88 million of class A-2-R senior secured fixed-rate notes with a 1.97% coupon.

The CLO originally issued $12.88 million of 4.04% class A-2 fixed-rate notes on Aug. 8, 2018.

Goldman Sachs & Co. LLC was the refinancing agent.

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

The investment management firm is based in Denver.

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