Benefit Street CLO refinancing on tap; more than $9 billion of CLOs refinanced over year

By Cristal Cody

Tupelo, Miss., Sept. 11 – Activity in the refinancing space continues with Benefit Street Partners LLC expected to refinance $458.6 million of notes from a vintage 2012 CLO transaction.

U.S. CLO managers have refinanced $9.3 billion in 23 vintage CLO deals over the year, according to J.P. Morgan Securities LLC.

Most refinancing activity has taken place between six and 12 months after the end of the CLO’s non-call period, according to BofA Merrill Lynch.

Benefit Street Partners plans to refinance $458.6 million of notes in the Benefit Street Partners CLO I, Ltd./Benefit Street Partners CLO I LLC transaction, according to a market source.

The deal includes $286.7 million of class A-1R floating-rate notes (Aaa/AAA); $47.6 million of class A-2R floating-rate notes (/AA); $39.85 million of class B-R deferrable floating-rate notes (/A); $23.15 million of class C-R deferrable floating-rate notes (/BBB); $18 million of class D-R deferrable floating-rate notes (/BB) and $43.3 million of subordinated notes.

Citigroup Global Markets Inc. is the refinancing agent.

Benefit Street Partners is the CLO manager.

The new notes will be due Oct. 15, 2025 and have a reinvestment period that ends Oct. 15, 2017.

The deal is expected to close on Oct. 15.

The transaction is backed primarily by a revolving pool of broadly syndicated senior secured loans.

Benefit Street Partners has priced two deals in the CLO primary market year to date.

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