AMR Refinancing Results: TCW CLO 2019-1

KopenTech is pleased to announce the successful refinancing of TCW CLO 2019-1 via an AMR auction. Classes A through C, $330 million in aggregate, cleared below the cap margins, the maximum acceptable spread level. Over $800 million in bids were submitted through KopenTech’s platform resulting in the auction being 2.6x oversubscribed. Please see the table below for individual tranche information.

The AAA-rated Class A tranche cleared at L+97, 2.4x oversubscribed. The auction lowered the cost of A through C tranches from L+127 to L+116. This is the second refinancing for TCW CLO 2019-1, a rare occurrence in the world of CLOs due to the high costs of traditional refis. The efficient process and economic nature of AMR refinancing allows equity investors to lower the cost of funding while they wait for the optimal time to reset a transaction.

This was the third successful AMR auction hosted on KopenTech’s platform in the last 12 months, with a cumulative total of over $3.4 billion in bids being submitted by broker-dealers across the capital stack, resulting in an average oversubscription of 3x.

AMR is currently embedded in approximately $5.5 billion of CLOs and continues to gain traction among investors. KopenTech’s AMR platform now has 15 broker-dealer members and continues to add participants.

More online refinancings are expected given current market conditions. In addition to TCW CLO 2019-1, five CLO transactions with the AMR feature will be out of their non-call period in 2021, totaling $2.15 billion. Potential candidates for AMR refinancing are listed below.