Sound Point Capital prices new $715 million CLO; refinancings make up bulk of October action

By Cristal Cody

Eureka Springs, Ark., Oct. 20 – Sound Point Capital Management LP priced a new $715 million CLO transaction amid heavy refinancing activity seen in the primary market in October.

The month has seen more than $9 billion of CLO volume from 19 deals, with 13 of the transactions refinancings, according to market sources and Prospect News data.

In the securitized secondary market, trading volume remains strong in the non-investment-grade sector.

On Wednesday, $199.79 million of high-grade securities and $243.71 million of non-investment-grade issues were traded, according to Trace.

During Tuesday’s session, $172.9 million of high-grade CBO/CDO/CLO issues and $260.4 million of non-investment-grade securities were traded.

On Monday, $45.2 million of high-grade issues and $408 million of non-investment-grade securities were traded.

Sound Point Capital Management sold $715 million of notes due Jan. 23, 2029 in the Sound Point CLO XIV, Ltd./Sound Point CLO XIV LLC transaction, according to a market source on Thursday.

The CLO priced $451.5 million of class A floating-rate notes at Libor plus 153 basis points in the AAA-rated tranche of the offering.

Credit Suisse Securities (USA) LLC was the placement agent.

The deal is backed primarily by first-lien senior secured loans.

Proceeds from the offering will be used to purchase a $700 million portfolio of mainly senior secured leveraged loans.

Sound Point Capital has brought three CLO deals to market year to date.

The New York-based asset management firm priced three CLO transactions in 2015.

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