Anchorage Capital plans return to market, preps $518.8 million CLO; March pipeline steady

By Cristal Cody

Tupelo, Miss., March 11 – Anchorage Capital Group, LLC plans to tap the CLO market for the first time in 2015 with a $518.8 million offering of notes due 2027, according to a market source.

March issuance remains strong with more than $3 billion of CLOs priced over the month, sources said.

“The CLO supply picture may pose a threat to future tightening, as March had indeed come in like a lion for CLO issuers,” according to a Wells Fargo Securities, LLC report from Dave Preston, senior analyst, and Jason McNeilis, associate analyst.

Global CLO issuance year to date totals more than $15 billion, according to data compiled by Prospect News.

Anchorage Capital Group plans to price $518.8 million of notes due 2027 in the Anchorage Capital CLO 6, Ltd./Anchorage Capital CLO 6, LLC offering, according to a market source.

The deal includes $282.5 million of class A-1 senior secured floating-rate notes (Aaa//AAA); $25 million of class A-2 senior secured fixed-rate notes (Aaa//AAA); $57.5 million of class B senior secured floating-rate notes (Aa2); $27.3 million of class C mezzanine secured deferrable floating-rate notes (A2); $36.3 million of class D mezzanine secured deferrable floating-rate notes (Baa3); $30.7 million of class E junior deferrable floating-rate notes (Ba3); $10 million of class F junior deferrable floating-rate notes (B3) and $49.5 million of subordinated notes.

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

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