OREANDA-NEWS. S&P Global Ratings today assigned its preliminary ratings to Canyon Capital CLO 2012-1 Ltd./Canyon Capital CLO 2012-1 LLC's $302.50 million floating-rate replacement notes (see list). The replacement notes will be issued via a proposed supplemental indenture.

The preliminary ratings reflect our opinion that the credit support available is commensurate with the associated rating levels.

On the Oct. 17, 2016, refinancing date, the proceeds from the issuance of the replacement notes are expected to be used to redeem the original notes. At that time, we anticipate withdrawing the ratings on the original notes and assigning final ratings to the replacement notes. However, if the refinancing doesn't occur, we may affirm the ratings on the original notes and withdraw our preliminary ratings on the replacement notes.

The replacement notes are being issued via a proposed supplemental indenture, which, in addition to outlining the terms of the replacement notes, will also: Extend the reinvestment period to Jan. 15, 2019;Extend the transaction's legal final maturity date to Jan. 15, 2026;Extend the weighted average life test to 6.75 years;Incorporate the recovery rate methodology and updated industry classifications as outlined in our August 2016 collateralized loan obligation criteria update (see "Global Methodologies And Assumptions For Corporate Cash Flow And Synthetic CDOs," published Aug. 8, 2016).REPLACEMENT AND ORIGINAL NOTE ISSUANCES