Neuberger Berman brings $410.15 million CLO; Marathon prices $461.37 million; AAs widen

By Cristal Cody

Tupelo, Miss., June 22 – Details emerged on new CLOs brought by Neuberger Berman Fixed Income LLC and Marathon Asset Management LP.

Neuberger Berman Fixed Income priced a $410.15 million offering and placed the AAA notes at Libor plus 142 basis points, on the tight side of recent deals. The CLO also priced the AA-rated notes at Libor plus 180 bps, the tightest AA print year to date, according to Wells Fargo Securities LLC.

Marathon Asset Management sold $461.37 million of notes in its transaction and placed the AAA-rated tranche at Libor plus 149 bps.

“U.S. CLO supply stands at $55.4 [billion], which is just $300 [million] off FY 2012,” J.P. Morgan Securities LLC analysts said in a note.

Light deal action is expected over the second half of the year with about $90 billion to $100 billion of total issuance forecast for 2015.

“U.S. CLO 1.0 AAA notes comprised more than 50% of this total and continued to trade at YTD wides,” BofA Merrill Lynch analysts said in a note.

CLO AAA notes were unchanged at Libor plus 145 bps, on the tight side of spreads year to date, according to the analysts.

AA-rated notes eased 5 bps from the week ended June 13 to Libor plus 195 bps, the analysts said. AA notes have traded as tight as Libor plus 190 bps to as wide as Libor plus 255 bps year to date.

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