Fortress refinances 2018 fixed-rate notes; high-grade CBO/CDO/CLO paper improves

By Cristal Cody

Tupelo, Miss., Sept. 23 – In new CLO refinancing action, Fortress Investment Group LLC repriced $41 million of fixed-rate notes from a 2018 CLO.

About 27 vintage CLOs have refinanced fixed-rate tranches this year, according to a BofA Securities, Inc. report.

More than $28 billion of vintage CLO tranches overall have been refinanced year to date, while over $51 billion of new CLO transactions have priced this year, according to market sources.

Elsewhere, secondary trading has been steady so far this week.

On Tuesday, $375.72 million of investment-grade CBO/CDO/CLO paper was traded at an average 98.70.

High-grade trading volume totaled $303.99 million on Monday with issues averaging 98.10.

Secondary supply in non-high-grade CBO/CDO/CLO notes totaled $151.15 million on Tuesday, up from $119.82 million on Monday.

The lower-rated tranches softened to an average 73.30 on Tuesday from 74.40 on Monday.

Fortress Investment Group refinanced $41 million of fixed-rate notes from its vintage 2018 Fortress Credit BSL V Ltd./Fortress Credit BSL V LLC transaction, according to market sources.

The CLO priced $41 million of 2.723% class B-2-R senior secured fixed-rate notes due July 11, 2030 (AA) 123 basis points tighter than the original offering.

Fortress previously issued $41 million of class B-2 senior secured fixed-rate notes on Jan. 11, 2018.

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