Europe primary wakes; Cairn prices €308.55 million CLO; U.S. secondary ‘extremely busy’

By Cristal Cody

Tupelo, Miss., May 22 – European CLO issuance year to date grew to nearly €10 billion following new transactions over the week, including an offering from Cairn Loan Investments LLP, according to Prospect News data and market sources on Friday.

Cairn priced a €308.55 million CLO transaction and placed the AAA-rated notes at Euribor plus 130 basis points.

Citigroup Global Markets Inc. was the placement agent.

Cairn Loan Investments will manage the CLO.

Credit Suisse Asset Management Ltd. was in the market on Thursday with the €413.53 million dual currency Cadogan Square CLO VI BV deal. The AAA-rated tranches priced at Euribor/Libor plus 130 bps.

U.S. CLO secondary trading picked up over the week while May issuance remains thin, according to a Wells Fargo Securities, LLC report.

“Primary supply for the month is low, secondary supply is high and spreads have tightened,” Wells Fargo Securities senior analyst Dave Preston said in a note on Friday.

“The CLO secondary market was extremely busy this week, with more than $1.2 billion of bid lists – in a three-day period,” Preston said. “This is approximately double the usual weekly average. At this point, next week’s volume appears to be lighter, as accounts are likely suffering from bid list fatigue and looking for a brief pause in a short week.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.