CLO Market Round-Up: Altisource Announces Definitive Agreement to Sell a Subsidiary
Last week, Fitch Ratings has affirmed the Long-Term Issuer Default Ratings ('B+') for Veracode Partner, LP, and Valkyr Purchaser, LLC which operates as Veracode, with Outlook Stable. The CLO market also saw the agreement of sales, more rating affirmations, and more...
In Trepp's weekly CLO market round-up, we recap daily TreppWire stories that highlighted the latest headlines impacting the leveraged loan and corporate CLO markets. If you are interested in seeing the coverage of the CLO headlines in your inbox every morning, click here.
Read below for the overview and see how these developments might impact leveraged loan prices.
Here, see a preview of the loans that faced the largest movement in prices last week. Find Trepp's full list, along with the managers who hold the largest exposure to each loan in the TreppCLO product.
Fitch Affirms Veracode's IDR at 'B+' With Outlook Stable
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings ('B+') for Veracode Partner, LP, and Valkyr Purchaser, LLC which operates as Veracode, with Outlook Stable. Fitch has also affirmed the 'BB+'/'RR1' rating for Veracode's $30 million secured revolving credit facility and $300 million first-lien secured term loan.
The company, a provider of application security solutions delivered through a cloud-based platform, is represented in the CLO universe by the $300 million VALKYR PURCHASER LLC - VALKYR PURCHASER, LLC (Veracode) First Lien Term Loan (L+400; due 2027), whose rating has been affirmed by Fitch. The credit was held by 73 CLO Vehicles in August, according to Trepp's CLO database.
There has not been much trading activity recently. IHS Markit quoted this credit at around par over the last couple of months.
Fitch Affirms Astra's IDR at 'B'; Outlook Revised to Negative
Fitch Ratings has affirmed Astra Acquisition Corp.'s Long-Term Issuer Default Rating (IDR) at 'B'. Among other things, Fitch has also affirmed the 'BB-'/'RR2' rating for the secured revolving credit facility and first-lien term loan, and 'CCC+'/'RR6' for the existing $110 million second-lien term loan. The Rating Outlook has been revised to Negative from Stable. The Company is a provider of cloud-based software solutions for higher educational institutions.
These actions follow Astra's announcement to acquire Blackboard in 4Q21 for $1.9 billion, subject to customary conditions. The transaction will be funded by additional term loans.
The Company is represented in the CLO universe by the $323 million Astra Acquisition Corporation - Term Loan B-1 (L+475; due 2027). The credit was held by more than 30 CLO Vehicles in August, according to Trepp's CLO database.
The latest trading activity on this credit was observed in June at around par with sales prevailing. IHS Markit has been quoting the credit at slightly above par lately.
Altisource Announces Definitive Agreement to Sell a Subsidiary
Altisource Portfolio Solutions S.A. announced that a definitive agreement has been entered into between Pointillist, Inc. (a majority-owned subsidiary of Altisource) and Genesys Cloud Services, pursuant to which Genesys will buy all of the equity interests in Pointillist for a purchase price of $150 million. The sale, which is subject to customary closing conditions including the receipt of regulatory consents, is expected to occur by December 2021.
Altisource estimates that, as a result, it will receive approximately $100 million in cash at closing and an additional $3.7 million in cash following the one-year anniversary of closing, assuming no indemnification claims. The Company estimates a pre-tax and after-tax gain of approximately $107 million.
The Company, an integrated service provider and marketplace for the real estate and mortgage industries is represented in the CLO universe by the $412 million AltiSource - Term Loan B (03/18) (L+400; due 2024). The credit was held by about 50 CLO Vehicles in August, according to Trepp's CLO database.
There has not been actual trading activity recently. IHS Markit quoted this credit in the low to medium 80s this week, with a jump to high 80s on 7th October.
General Pricing Data
The CLO market-priced 15 deals last week. There were nine new, four refi, and two reset deals. 12 deals priced in the US market while the rest priced in the EU.
The best new execution in the US market was the $608 million Elmwood XII. It featured a AAA class at L+115, was managed by Elmwood and was arranged by RBC.
The best new execution in the EU market was the €359.25 million BlueMountain Euro 2021-2 CLO. It featured a AAA class at E+100, was managed by Assured and was arranged by Citi.
The information provided is based on information generally available to the public from sources believed to be reliable.
Originally published in TreppWire, which is distributed every morning as a client-only email newsletter. TreppWire enables readers to stay up-to-date on market activity while providing a competitive advantage over others. TreppWire leverages Trepp’s market expertise and proprietary data sets to provide daily market commentary, trend analysis, research, and breaking news to its clients