Apollo refinances euro CLO; Palmer Square, DoubleLine reprice; refinancing spreads flat

By Cristal Cody

Tupelo, Miss., Feb. 3 – Apollo Management International LLP priced €372.5 million of notes in a second refinancing of a vintage 2014 euro-denominated CLO.

In that deal, ALME Loan Funding III DAC sold €250.4 million of class A-RR senior secured floating-rate notes (Aaa//AAA) at Euribor plus 77 bps in the senior tranche.

In new dollar-denominated refinancing activity, Palmer Square Capital Management LLC brought a $511.5 million second refinancing of a 2015 vintage CLO.

DoubleLine Capital LP also refinanced $350 million of notes from a 2017 broadly syndicated CLO.

New issue spreads were flat to about 10 basis points tighter across the stack on average from a week earlier, while spreads were unchanged in refinancings, according to a Wells Fargo Securities LLC research note on Friday.

Dollar-denominated CLO AAAs ended January with an average new issue print in the Libor plus 126 bps area and at Libor plus 99 bps in the refinancing space.

New issue AAAs were an average 1 bp tighter on the week, while refinanced AAA spreads were unchanged.

Primary CLO A-rated tranches ended Friday an average 10 bps better in the Libor plus 205 bps area, the Wells Fargo note said.

Lower down the stack, BBB new issue tranches were unchanged on average in the new issue and refinancing markets at Libor plus 310 bps.

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