Debt Paid at Par, Equity IRRs Strong as Carlyle 2015-1 Resets
The reset of Carlyle Global Market Strategies Euro CLO 2015-1 priced yesterday. The deal, originally closed in March 2015, was refinanced in April 2017 and first reset in February 2020.
The reset of Carlyle Global Market Strategies Euro CLO 2015-1 priced yesterday. The deal, originally closed in March 2015, was refinanced in April 2017 and first reset in February 2020.
A large minority CLO equity note was on a BWIC yesterday, and the tranche traded well. The deal, originally priced with a closing date of 28 June 2023, recently completed a reset that extended its reinvestment end date from 20 July 2028 to 20 July 2030. The reset also reduced its WACC by around 74 bps, more than offsetting the decline in collateral WAS of roughly 63 bps.
US CLO Manager Report: Carlyle
This study examines a sample of 218 deals from 2015 to 2019, utilising the Morningstar European Euro-Denominated Loan Index as...
Following the reset, the deal's reinvestment period extended by 4.6 years, and its WACC decreased by around 4 bps, despite a wider AAA pricing. This was achieved thanks to a more efficient capital structure and tighter pricing in other rated tranches.
The manager, Carlyle, has done well in resetting Carlyle U.S. CLO 2017-2, despite having a low MVOC (BB) of around 102% before the reset...
