Anchorage Capital sells €411 million CLO, manager’s second deal; secondary market thin

By Cristal Cody

Tupelo, Miss., Aug. 31 – The European CLO primary market saw new activity this week with a €411 million transaction from Anchorage Capital Group, LLC.

The deal is the CLO manager’s second euro-denominated CLO offering year to date. Anchorage Capital closed on its first European CLO issue on July 26.

Elsewhere, trading in the securitized secondary market was light over the week ahead of the long Labor Day holiday weekend. On Thursday, $45.73 million of high-grade CBO/CDO/CLO securities and $55.62 million of non-high-grade issues were traded, according to Trace data.

Trading volume on Wednesday included $85.02 million of high-grade issues and $49.89 million of lower-rated securities, while $64.18 million of investment-grade CBO/CDO/CLO securities and $130.47 million of non-high-grade issues traded on Tuesday.

High-grade volume was heavy on Monday with $183.68 million of issues traded. The session also had $31.37 million of lower-rated securities trade.

In its deal, Anchorage Capital priced €411 million of notes due 2031 in the new Anchorage Capital Europe CLO 2 DAC transaction on Thursday, according to market sources.

The CLO sold €216 million of class A-1 senior secured floating-rate notes at Euribor plus 96 basis points at the top of the capital stack.

Credit Suisse Securities (Europe) Ltd. was the placement agent.

The issue is backed primarily by broadly syndicated senior secured loans and senior secured bonds.

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