Blackstone/GSO is refinancing a European CLO originally issued in 2014, the €400 million Phoenix Park CLO D.A.C., according to Fitch Ratings.
It follows in the footsteps of other CLO managers, including Apollo, KKR and Pinebridge, in taking advantage of a dramatic reduction in yield spreads over the past few months
On Jan. 30, the CLO will issue class A-1-R, A-2-R and B-R refinancing notes, and apply the net issuance and sales proceeds to redeem the existing class A-1, A-2 and B notes at par (plus accrued interest).
In conjunction with the refinancing, certain provisions of the transaction documents will be amended in order to make the deal compliant with the Volcker Rule, meaning it can be marketed to U.S. banks.
Any amendments are subject to approval by noteholders and confirmation by rating agencies, Fitch noted. “If, in the agency's opinion, the amendment is risk-neutral from a rating perspective Fitch may decline to comment,” the report states.
Noteholders should be aware that confirmation is considered to be given if Fitch declines to comment.