Northwoods Capital 22 $464.2M CLO reset via BofA priced

Northwoods Capital 22 $464.2M CLO reset via BofA priced

Northwoods Capital 22 $464.2M CLO Completes Reset via BofA Pricing
February 26, 2026

Angelo Gordon’s Northwoods Capital 22 CLO has completed a reset, increasing its size to $464.2 million from its original $294.8 million in 2020, according to a Creditflux report. This marks the third restructuring of the collateralized loan obligation since its inception, following an initial 2020 launch and a 2022 refinancing. The reset was executed with Bank of America (BofA) serving as the lead underwriter, reflecting ongoing market activity in the CLO sector amid evolving credit conditions.

The reset process involved repricing the deal’s debt and equity tranches to align with current market spreads and liquidity conditions. While specific pricing terms for the 2026 reset were not disclosed, the transaction aligns with broader trends in the U.S. CLO market, where AAA-rated notes have tightened to 12-month lows, as seen in recent transactions priced at spreads as low as 113 basis points. However, Deutsche Bank’s analysis of early 2026 CLO equity performance suggests limited improvement compared to 2025, indicating persistent challenges for equity investors in the sector.

The reset also follows a favorable appellate court ruling in January 2024, which reinforced protections for secured lenders in CLO restructurings, potentially influencing the legal and structural framework of deals like Northwoods 22. This development has added clarity for managers navigating complex reset negotiations, particularly in cases involving asset quality disputes or covenant adjustments.

With the reset completed, Northwoods Capital 22 CLO is positioned to extend its investment horizon and recalibrate its leverage profile. The transaction underscores the resilience of the CLO market amid higher interest rates, though ongoing performance metrics will be critical for assessing its alignment with broader sector trends.

Creditflux, Third time is the charm as Northwoods Capital 22 CLO gets reset (February 8, 2024): Creditflux, Third time is the charm as Northwoods Capital 22 CLO gets reset (February 8, 2024).

This article is for informational purposes only and does not constitute investment advice.