Shenkman sells $552.5 million; CSAM eyes $1 billion deal; Octagon preps $616.4 million CLO

By Cristal Cody

Tupelo, Miss., July 2 – Shenkman Capital Management, Inc. opened the July primary market with a $552.5 million collateralized loan obligation deal, according to a source on Wednesday.

Adams Mill CLO Ltd./Adams Mill CLO LLC placed the AAA-rated tranche of notes at Libor plus 148 basis points.

The CLO market looks set to continue the heavy pace of issuance with a $1,036,000,000 deal in the pipeline from Credit Suisse Asset Management, LLC, according to a market source.

Coming up, Octagon Credit Investors, LLC intends to bring a $616.4 million CLO offering, a source said.

“It just remains on fire,” one informed source said of the CLO market. “The size of the deals keeps increasing.”

Market participants predict as much as $100 billion of total CLO issuance for the year. More than $14 billion of CLOs priced in the U.S. and European primary markets in June.

Shenkman sells $552.5 million

Shenkman Capital Management priced $552.5 million of notes due July 15, 2026 in the CLO offering, according to a market source.

The Adams Mill CLO sold $230,625,000 of class A-1 floating-rate notes (//AAA) at Libor plus 148 bps and $105 million of class A-2 floating-rate notes (//AAA) at Libor plus 143 bps.

The CLO priced $46,625,000 of class B-1 floating-rate notes at Libor plus 200 bps; $25 million of 4.11% class B-2 fixed-rate notes; $17,125,000 of class C-1 floating-rate notes at Libor plus 300 bps; $7 million of 5.302% class C-2 fixed-rate notes; $30,375,000 of class D-1 floating-rate notes at Libor plus 350 bps; $2 million of class D-2 floating-rate notes at Libor plus 425 bps; $22.75 million of class E-1 floating-rate notes at Libor plus 500 bps; $6 million of class E-2 floating-rate notes at Libor plus 625 bps and $11.75 million of class F floating-rate notes at Libor plus 569 bps.

The deal included $48.25 million of subordinated notes in the equity tranche.

Nomura Securities International, Inc. arranged the offering.

Shenkman Capital Management will manage the CLO, which is backed primarily by first-lien senior secured loans.

Proceeds from the transaction will be used to purchase about a $535 million portfolio of mostly senior secured leveraged loans.

Shenkman was last in the primary market on April 10 with the $520.6 million Washington Mill CLO Ltd./Washington Mill CLO LLC offering.

The New York-based investment firm priced two CLO deals in 2013.

CSAM plans $1 billion deal

Credit Suisse Asset Management intends to bring $1,036,000,000 of notes due 2026 in the CLO transaction, according to a market source.

The Madison Park Funding XIV Ltd./Madison Park Funding XIV LLC deal includes $5 million of class X floating-rate notes (//AAA); $620 million of class A floating-rate notes (//AAA); $135 million of class B floating-rate notes; $52.5 million of class C floating-rate notes; $60 million of class D floating-rate notes; $53 million of class E floating-rate notes; $7 million of class F floating-rate notes and $103.5 million of subordinated notes.

Morgan Stanley & Co. is the placement agent.

Credit Suisse Asset Management will manage the CLO, which is backed primarily by senior secured loans.

Proceeds from the deal will be used to purchase about a $1 billion portfolio of mostly senior secured leveraged loans.

Credit Suisse Asset Management was last in the primary market on May 8 with the $817.69 million Madison Park Funding XII Ltd./Madison Park Funding XII LLC deal.

The unit of Credit Suisse Group AG brought the $746.04 million Madison Park Funding XIII Ltd./Madison Park Funding XIII LLC transaction on Feb. 3.

Octagon preps CLO

Octagon Credit Investors intends to offer $616.4 million of notes due 2026 in the CLO deal, according to a market source.

The Octagon Investment Partners XX, Ltd./Octagon Investment Partners XX, LLC offering is expected to include $384 million of class A notes (//AAA); $63.6 million of class B notes; $30.2 million of class C notes; $38.5 million of class D notes; $39.6 million of class E notes and $60.5 million of subordinated notes.

J.P. Morgan Securities LLC is the placement agent.

Octagon Credit Investors will manage the CLO.

The offering is collateralized primarily by first-lien senior secured loans.

Proceeds from the deal will be used to purchase about a $600 million portfolio of mostly senior secured leveraged loans.

Octagon Credit Investors was most recently in the primary market on April 16 with the refinancing of the $358.2 million Octagon Investment Partners XII Ltd. 2012-1/Octagon Investment Partners XII LLC transaction.

The firm priced the $566.88 million Octagon Investment Partners XIX Ltd./Octagon Investment Partners XIX LLC deal in March.

New York-based Octagon, an affiliate of CCMP Capital Advisors, LLC, brought four CLO deals in 2013.

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