OREANDA-NEWS. S&P Global Ratings today assigned its preliminary ratings to the class A-1-R, A-2-R, B-R, C-R, and D-R notes from Carlyle Global Market Strategies CLO 2012-3 Ltd., a collateralized loan obligation managed by Carlyle Investment Management LLC.

The replacement notes will be issued via a proposed supplemental indenture. Other proposed changes in the supplemental indenture include extending the reinvestment period, legal final maturity, and WAL test dates by four years, and decreasing the subordinate management fee by 0.10% to 0.25%.

We also expect the combination securities will be redeemed on the proposed refinancing date and to withdraw our 'AA+ (sf)' rating on the securities.

The replacement notes are expected to be issued at floating spreads over LIBOR--some higher and some lower than the current floating spread on the original notes. The cash flow analysis demonstrates, in our view, that the replacement notes have adequate credit enhancement available at the current rating levels.

On the Sept. 8, 2016, refinancing date, the proceeds from the issuance of the replacement notes are expected to redeem the original notes, upon which we anticipate withdrawing the ratings on the original notes and assigning 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.