CLO Roundup: MidOcean prices first new-issue CLO for 2018
MidOcean Credit CLO VIII was the first new-issue collateralized loan obligation to price in 2018, closing with a triple-A discount margin of 115 basis points, according to S&P Global Ratings.
The deal was the first in seven months for New York-based MidOcean Credit Fund Management LP, a New York-based alternative credit manager and affiliate of MidOcean Credit Partners.
MidOcean’s deal is the first primary issuance among nine deals (totaling $3.9 billion) that have otherwise involved refinancings and resets on existing deals.
Also pricing on Wednesday was the $354 million Greywolf CLO V deal from Greywolf Loan Management and the $525 million HPS Loan Management 4-2014 (formerly Highbridge Loan Management 2014-4) handled by HPS Investment Partners.
Goldman Sachs arranged all three deals.
Other deals continued to enter the pipeline this week, according to presale reports, dominated by refi deals that were previously refinanced only last year.
Palmer Square CLO 2014-1, for instance, is resetting the interest rate on its triple-A notes for the second time. Not only has the spread over Libor tightened, however; there have also been a variety of other changes including an extension of the reinvestment period, stated maturity and non-call period; changes to certain collateral quality tests and changes to OC test levels, according to Moody’s Investors Service.
Also undergoing a second refinancing is the former ALM XIV, a $1.6 billion deal from Apollo Global Management that has been rechristened RR 3, under management by Apollo affiliate Redding Ridge Asset Management, according to presale reports from Fitch Ratings and S&P.
CIFC VS Management is pursuing a refinancing of its $629.1 million CIFC Funding 2014 CLO, which was issued in March 2014 and was refinanced previously last March. CIFC is gaining an extension in maturity, the reinvestment and non-call periods and the weighted average life test date.