Deal Scan: Renovate America Adds to PACE Supply
Renovate American Adds to PACE Supply: The $268,474 HERO Funding 2017-1A is initially backed by $191.7 million of Property-Assessed Clean Energy bonds (PACE Bonds) issued by three California municipalities: Western Riverside Council of Governments, San Bernardino Council of Governments and County of Los Angeles. The remainder of the collateral will be acquired by July 2. This is Renovate America’s first strip to the securitization market since the program administrator was targeted by two class action lawsuits on behalf of borrowers.
Caliber Non-Prime RMBS: At $402 million, COLT 2017-1 is nearly twice the size of the sponsor’s previous deal ($225M), completed in December; Caliber, controlled by Lone Star Funds, has also introduced a new performance trigger that allows it to offer lower credit enhancement for the senior tranche, which carry a triple-A from KBRA, Fitch, Morningstar and DBRS. (For full story, read here.)
CLO Refis: Another two U.S. collateralized loan obligations were refinanced, Cent CLO 20, managed by Columbia Management Investment Advisers, Sound Point CLO IV, managed by Sound Point Capital Management. Both deals were initially issued prior to December 2014 and so were eligible, under an SEC no action letter, to refinance once without triggering a requirement for the manager to retain 5% of the economic risk of the deals
Oaktree Capital Management also refinanced a European CLO, Arbour CLO II. Columbia Management Investment Advisers.