Carlyle refinances two vintage CLO tranches; market mostly quiet, primary action forecast

By Cristal Cody

Eureka Springs, Ark., July 7 – Carlyle Investment Management LLC refinanced $150 million of notes in two tranches in a vintage 2013 CLO deal.

Market activity mostly has been quiet this week, one source said on Thursday.

“There’s been very little trading because of the holiday,” the source said. “People are working on deals, so I think there likely will be some more issuance probably next week.”

In the secondary market, 32 investment-grade CBO/CDO/CLO issues totaling $176.05 million and 12 non-investment-grade CBO/CDO/CLO securities totaling $53.35 million were traded on Wednesday, according to Trace.

Carlyle Investment Management refinanced $150 million of notes due Oct. 15, 2025 in two tranches in the Carlyle Global Market Strategies CLO 2013-4, Ltd./Carlyle Global Market Strategies CLO 2013-4 LLC deal, according to a market source.

Carlyle Global Market Strategies CLO 2013-4 priced $130 million of class A-2-R senior secured notes at Libor plus 152 basis points.

The class A-2 note originally was sold at Libor plus 110 bps for 18 months, followed by a 12-month step-up to Libor plus 160 bps and a final step up to Libor plus 190 bps.

The CLO refinanced $20 million of class B-2 senior secured notes with a floating-rate spread at Libor plus 210 bps versus the original class B-2 fixed-rate coupon of 3.973%.

Citigroup Global Markets Inc. was the refinancing agent.

Proceeds from the refinancing will be used to redeem the original class A-2 and B-2 notes.

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