Creditflux: Audax slashes cost of debt with two-year-old reset
The reworking of Audax Senior Debt CLO 8 saw the top-of-stack paper tighten in by 95bps, while the overall cost of funding was reduced by over 132bps. - Creditflux
NEW YORK – October 23, 2025 – Audax Private Debt (“Audax”) announced the pricing of the reset of Audax Senior Debt CLO 8, LLC (“CLO 8”), a $519 million middle-market CLO arranged by BNP Paribas. The transaction features a senior AAA term-note spread of SOFR + 145 bps and is expected to close on November 6, 2025.
The reset of CLO 8 reflects continued investor appetite for seasoned, diversified middle-market loan portfolios—a segment of the private credit market that has demonstrated both resilience and relative value amid a higher-for-longer rate environment. For Audax, the transaction extends the firm’s strong momentum in 2025, marking its sixth CLO transaction this year and highlights the firm’s ongoing issuance activity supported by its origination depth and disciplined credit approach.
“We see middle-market CLOs remaining as one of the most efficient structures for long-term investors seeking floating-rate income with robust credit enhancement,” said Sean O’Keefe, Managing Director at Audax Private Debt. “This reset reflects the continued evolution of our platform and our focus on delivering strong risk-adjusted returns through changing market conditions.”
With the completion of this transaction, Audax’s CLO platform now comprises 18 transactions totaling more than $5.2 billion in assets across 10 active vehicles— positioning Audax among the most active programs in the middle-market space.
Key Terms
- Total Deal Size: $518.99mm
- AAA Notes: priced at SOFR + 145 bps
- Non-Call Period End: January 20, 2028
- Reinvestment Period End: January 20, 2030
Ratings & Coupons
- Class X: $6.00mm, AAA (S&P), SOFR + 100 bps
- Class A-1R: $290.00mm, AAA (S&P), SOFR + 145 bps
- Class A-2R: $20.00mm, AAA (S&P), SOFR + 165 bps
- Class BR: $37.50mm, AA (S&P), SOFR + 185 bps
- Class CR: $35.00mm, A (S&P), SOFR + 210 bps
- Class DR: $25.00mm, BBB- (S&P), SOFR + 315 bps
- Class ER: $32.50mm, BB- (S&P), retained
- Subordinated Notes: $72.99mm
