March primary robust; Arrowpoint raises $408.1 million; Prudential prices; Babson on tap

By Cristal Cody

Tupelo, Miss., March 27 – U.S. CLO issuance remains strong with about $12 billion priced in March and more than $26 billion year to date, sources said on Friday.

“CLO issuance has been strong after a slow start to the year,” Barclays Bank plc analysts said in a note. “Another six structures have priced since last Friday.”

Arrowpoint Asset Management LLC tapped the market with a $408.1 million CLO offering.

Also in pricing action, Prudential Investment Management, Inc. brought a $512 million CLO deal via Morgan Stanley & Co. LLC, according to market sources.

The AAA-rated tranche priced at Libor plus 143 basis points. Final pricing details were not available by press time.

Prudential’s new CLO had a “slightly unique structure,” according to a Wells Fargo Securities, LLC note on Friday from senior analyst Dave Preston and associate analyst Jason McNeilis. “The deal has a three-year non-call and a five-year reinvestment.”

Coming up in the pipeline, Babson Capital Management LLC plans to price a $566.25 million CLO transaction, according to a market source.

Arrowpoint Asset Management priced $408.1 million of notes due April 18, 2027 in a CLO deal, according to a market source.

Arrowpoint CLO 2015-4 Ltd./Arrowpoint CLO 2015-4 LLC sold $252.25 million of class A floating-rate notes at Libor plus 155 bps in the senior AAA tranche.

Deutsche Bank Securities Inc. was the placement agent.

© 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.