| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Z > Headlines for Zais CLO 9 Ltd. > News item |
Zais prices $508.44 million, manager’s second CLO of year; energy sector attracts U.S. CLOs
By Cristal Cody
Tupelo, Miss., June 22 – Zais Group, LLC priced $508.44 million of notes in the manager’s second CLO deal of the year.
CLO managers have brought more than $56 billion of new issues and about $72 billion of refinanced CLOs to the primary market year to date, according to market sources.
In other activity, Fitch Ratings said in a release on Friday that “U.S. CLOs are not shying away from new loans being issued by the energy sector despite the continued risk of defaults in their legacy holdings, largely to loans issued when oil prices were higher.”
CLO exposure to the energy sector could increase on strong energy issuance this year, Fitch said.
The most widely held energy exposures were done between September 2017 and June 2018, according to the release.
“The risk of default is somewhat mitigated by the CLOs’ exposure to newer transactions,” Fitch said.
“Newer energy deals have been focused further down the value chain within the energy sector, with several midstream energy services providers issuing term loans included in CLO exposure,” the release said. “Generally, midstream energy issuers tend to exhibit more stable cash flows with less direct commodity price exposure than other energy subsectors given the critical nature of midstream infrastructure to support energy production.”
Zais prices CLO 9
Zais Group priced $508.44 million of notes due July 20, 2031 in its CLO offering, according to a market source.
Zais CLO 9 Ltd./Zais CLO 9 LLC sold $320 million of class A floating-rate notes at Libor plus 120 basis points in the AAA rated tranche.
J.P. Morgan Securities LLC was the placement agent.
Zais Leveraged Loan Master Manager, LLC will manage the CLO.
Zais Group priced two CLOs in 2017. This is the firm’s second CLO transaction of 2018.
The Red Bank, N.J.-based structured credit asset management firm placed two CLO deals in 2016.
© 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.