CLO spreads tighten on heavy secondary volume; THL repays class X notes; new CLOs close

By Cristal Cody

Tupelo, Miss., March 30 – CLOs are improving in step with other securities following government measures to shore up the economy in the wake of the coronavirus.

CLO spreads tightened 100 basis points to 225 bps over the past week on improved technicals and broader risk markets, BofA Securities, Inc. analysts said in a research note.

Meanwhile, THL Credit Advisors LLC paid in full the $3.6 million of class X senior secured floating-rate notes from the THL Credit Wind River 2017-4 CLO Ltd./THL Credit Wind River 2017-4 LLC transaction, according to Fitch on Monday.

The class X notes were issued Dec. 12, 2017 at Libor plus 60 bps. The other tranches in the CLO remain outstanding.

In other action on Monday, several previously reported new issue CLOs closed.

MJX Asset Management LLC closed on the $510.5 million Venture 39 CLO, Ltd./Venture 39 CLO, LLC deal that placed the senior notes at Libor plus 128 bps.

Oak Hill Advisors LP settled its $601.5 million OHA Credit Funding 5, Ltd./OHA Credit Funding 5 LLC offering that priced the senior AAA-rated floating-rate notes at Libor plus 117 bps.

ArrowMark Colorado Holdings LLC also wrapped its $504.5 million Elevation CLO 2020-11, Ltd./Elevation CLO 2020-11 LLC transaction. The CLO had priced the class A floating-rate notes at Libor plus 132 bps.

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