Park Avenue refinances CLO; DFG eyes third deal of year; high-grade secondary thin

By Cristal Cody

Tupelo, Miss., Aug. 24 – CLO refinancing action remains steady in August and includes a reset of a vintage 2016 deal from Park Avenue Institutional Advisers LLC.

Park Avenue Institutional Advisers priced $365.7 million of notes in the reprint of the manager’s first broadly syndicated CLO transaction.

Looking at the new issue market, DFG Investment Advisors, Inc. plans to price $510.5 million of notes in the CLO manager’s third deal of the year.

Elsewhere, the securitized secondary market has been active in mainly non-high-grade CBO/CDO/CLO securities over the week, according to Trace data. Secondary market volume in high-grade securities was thin.

In its deal, Park Avenue Institutional Advisers priced $365.7 million of notes in a refinancing and reset of the Park Avenue Institutional Advisers CLO Ltd. 2016-1/Park Avenue Institutional Advisers CLO LLC 2016-1 deal, according to a market source.

Park Avenue Institutional Advisers CLO 2016-1 sold $250 million of class A-1-R senior secured floating-rate notes at Libor plus 120 basis points in the senior tranche.

J.P. Morgan Securities LLC was the refinancing placement agent.

The maturity on the reset notes was extended to August 2031.

In the original $405.95 million transaction that was issued Aug. 23, 2016, the CLO sold $250.5 million of the class A-1 floating-rate notes at Libor plus 170 bps.

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