Otranto Park Reset: WACC Down to 197 bps as AAA Prints Tight to Risk
September 22, 2025
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Otranto Park CLO’s reset was notable, with the AAA tranche pricing at 130 bps. The reset extended the reinvestment end date from November 15, 2026, to April 15, 2030, while reducing the WACC by about 6 bps, from 203.3 bps to 197.2 bps. Although the deal had to pay up for its reset AAA given the current CLO AAA market, the cost savings from the AA through single-B tranches more than offset the wider AAA pricing.
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