Ares sells €306.7 million CLO: Canyon prices $454 million; high-grade CBO/CDO/CLOs gain

By Cristal Cody

Tupelo, Miss., Oct. 9 – The European primary market is seeing new issuance in October.

Ares European Loan Management LLP priced €306.7 million of notes in the manager’s first euro-denominated CLO offering priced in 2020.

Meanwhile in the dollar market, Canyon CLO Advisors LLC sold $454 million of notes in the manager’s second CLO offering of the year.

About $60 billion of dollar-denominated CLOs and more than €14 billion of euro-denominated CLOs have priced year to date, according to market sources.

In other activity, leveraged loan funds saw just $5.9 million in redemptions over the past week ended Wednesday, down from $261 million in the prior week and the smallest redemption this year, according to Fitch Ratings on Friday.

Year-to-date net outflows total $20.2 billion with loans experiencing outflows in 16 of the past 17 weeks, Fitch said.

Looking at the secondary market, volume was strong in high-grade CBO/CDO/CLO paper over the week with prices improving, Trace data shows.

On Thursday, $493.56 million of investment-grade notes were traded at an average price of 99.10.

Also, $155.52 million of lower-rated tranches traded on Thursday at an average price of 77.80.

High-grade volume totaled $339.28 million on Wednesday at an average price of 98.50, with another $52.08 million of non-high-grade issues traded at an average 68.40.

Secondary volume on Tuesday included $510.06 million of high-grade CBO/CDO/CLO paper averaging 98.80 and $204.28 million on Monday at an average price of 97.30.

Trading volume in lower-rated securities totaled $87.8 million on Tuesday at an 83.20 average price and $42.41 million on Monday at average 83.40.

Ares prices CLO XIV

Ares European Loan Management priced €306.7 million of notes due Oct. 21, 2033 in the new issue, according to a market source.

Ares European CLO XIV BV sold €185.1 million of class A senior secured floating-rate notes at Euribor plus 115 basis points at the top of the capital stack.

Goldman Sachs International was the placement agent.

The CLO is backed mainly by broadly syndicated senior secured loans or senior secured bonds.

Ares was last in the primary market on Nov. 27, 2019 when it priced the Ares European CLO XIII BV transaction, which closed at the beginning of the year on Jan. 21.

Ares European Loan Management is an asset management firm based in London.

Canyon CLO 2020-2 prints

Canyon CLO Advisors priced $454 million of notes due Oct. 15, 2031 in the new CLO deal, according to market sources.

Canyon CLO 2020-2, Ltd. sold $270 million of class A floating-rate notes at Libor plus 145 bps in the AAA-rated tranche.

Credit Suisse Securities (USA) LLC was the placement agent.

The transaction is collateralized primarily by broadly syndicated first-lien senior secured loans.

Canyon CLO Advisors is a Los Angeles-based subsidiary of alternative asset manager Canyon Capital Advisors LLC.

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