THL Credit Advisors, Carlson Capital, Chicago Fundamental Investment refinance CLOs

By Cristal Cody

Tupelo, Miss., July 14 – Three CLO managers refinanced and reset vintage CLO deals.

THL Credit Advisors LLC affiliate THL Credit Senior Loan Strategies LLC priced $416.3 million of notes in a refinancing and reset of a 2013 CLO.

Carlson Capital, LP refinanced $409.35 million of notes in a reset of a 2015 deal.

Chicago Fundamental Investment Partners, LLC sold $488.3 million of notes in a refinancing and reset of a 2014 CLO transaction.

Nearly $100 billion of CLOS have been refinanced or reset year to date, according to market sources.

Refinancing activity is forecast by Wells Fargo Securities, LLC analysts to slow in the second half of the year, while resets in 2015 vintage CLOs pick up.

Securitized secondary trading has been fairly light over the week. On Thursday, $21.27 million of investment-grade CBO/CDO/CLO issues and $115.22 million of non-high-grade securities were traded, according to Trace.

On Wednesday, secondary market volume included $86.02 million of high-grade issues and $80.37 million of non-high-grade issues.

THL prices $416.3 million

THL Credit Senior Loan Strategies issued $416.3 million of notes in a refinancing and reset of the THL Credit Wind River 2013-1 CLO Ltd./THL Credit Wind River 2013-1 LLC transaction, according to market sources and a notice of revised second supplemental indenture.

The CLO priced $289.3 million of class A-1R senior secured floating-rate notes (Aaa/AAA) at Libor plus 125 basis points in the AAA-rated tranche.

Barclays was the refinancing underwriter.

The maturity on the new notes will be extended to July 20, 2030 from the original April 20, 2025 maturity.

THL Credit Advisors has priced two new CLOs and refinanced two vintage CLOs year to date.

The Boston-based alternative credit investment firm priced two new CLOs and one refinanced CLO in 2016.

Carlson Capital refinances

Carlson Capital priced a $409.35 million refinancing of the 2015 Cathedral Lake II Ltd./Cathedral Lake II LLC transaction, according to a market source and a notice of revised proposed first supplemental indenture.

The CLO sold $257 million of class A-1-R senior secured floating-rate notes at Libor plus 131 bps at the top of the capital stack.

Jefferies LLC was the refinancing placement agent.

The maturity on the new notes was extended to July 16, 2029 from the original July 15, 2027 maturity.

The CLO manager has refinanced two CLOs year to date.

Carlson Capital priced one new CLO and refinanced one vintage CLO in 2016.

The alternative asset management firm is based in Dallas.

CFIP CLO 2014-1 reprices

Chicago Fundamental Investment Partners sold $488,387,180 of notes in a refinancing and reset of the CFIP CLO 2014-1, Ltd./CFIP CLO 2014-1, LLC transaction, according to a market source and a notice of executed second supplemental indenture.

The CLO priced $293 million of senior secured floating-rate notes at Libor plus 132 bps in the class A-R tranche.

Wells Fargo Securities LLC was the refinancing placement agent.

The maturity on the new notes will be extended to July 13, 2029 from the original April 13, 2025 maturity.

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

Chicago Fundamental Investment Partners is a Chicago-based asset management firm.

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