Beach Point Refinances $450 Million Loan in Santa Monica

On October 10, 2024, Beach Point CLO Management LLC, based in Santa Monica, California, announced the successful majority refinancing of its first Collateralized Loan Obligation (CLO), Sandstone Peak Ltd., with a target par value of $450 million. This refinancing extends the non-call period for various classes of shares, allowing for greater flexibility in managing the investment. The Class A-1 shares' non-call period is now set to January 15, 2026, while the Class A-2, B-1, and D shares will have their non-call period extended to October 15, 2026. Sinjin Bowron, the Portfolio Manager and Head of High Yield and Leveraged Loan strategies at Beach Point, expressed satisfaction with the refinancing, highlighting its potential to optimize costs and improve returns for investors. He emphasized the attractiveness of the current CLO market, particularly for those focused on thorough credit analysis and downside protection. This refinancing marks a significant milestone for Beach Point, as it is their first completed CLO refinancing. Beach Point Capital Management, which manages three CLOs totaling over $1.25 billion, has a substantial presence in the financial market, with approximately $17 billion in assets under management as of June 30, 2024. The firm serves a predominantly institutional client base and operates from multiple offices, including locations in New York, London, and Dublin. The successful refinancing of Sandstone Peak Ltd. reflects Beach Point's commitment to enhancing its CLO platform and building on the momentum generated by this deal, positioning the firm for future growth in the competitive CLO market.