Regiment Capital plans $407.38 million Cavalry CLO IV; ‘brisk pace’ for CLO creation

By Cristal Cody

Tupelo, Miss., Aug. 15 – Babson Capital Management LLC came by the CLO primary market on Friday and priced the Babson CLO 2014-II Ltd. transaction, according to a market source.

BofA Merrill Lynch was the placement agent.

Final pricing details were not available by press time.

CLO issuance over the week remained steady with new issuance in the U.S. and European markets, including Chenavari Credit Partners LLP’s €308 million Toro European CLO 1 Ltd. transaction and Kramer Van Kirk Credit Strategies LP’s $516 million KVK CLO 2014-3 Ltd./KVK CLO 2014-3 LLC deal.

Nearly $100 billion of CLOs have priced in the U.S. and European markets year to date, according to data compiled by Prospect News.

Looking ahead, Regiment Capital Management, LLC is marketing a $407,375,000 CLO offering of notes due 2026 in the firm’s first deal of the year, according to a market source.

The Cavalry CLO IV, Ltd./Cavalry CLO IV, LLC transaction is expected to price via Wells Fargo Securities LLC.

Regiment Capital Management is a Boston-based asset management firm.

Also ahead, BlueMountain Capital Management LLC plans to bring the $510 million BlueMountain CLO 2014-3 Ltd./BlueMountain CLO 2014-3 LLC deal via Citigroup Global Markets Inc., and Black Diamond Capital Management, LLC intends to price the $411.75 million Black Diamond CLO 2014-1, Ltd. transaction via J.P. Morgan Securities LLC.

The creation of new CLOs is “still occurring at a brisk pace,” Barclays analysts said in a note on Friday.

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