Guggenheim brings $846.1 million CLO; CreekSource prices AAAs at Libor plus 145 bps

By Cristal Cody

Tupelo, Miss., Feb. 10 – Guggenheim Partners Investment Management, LLC priced $846.1 million of notes in the market’s largest CLO deal of the year.

The CLO placed the AAA rated tranche at Libor plus 177 basis points.

Also in the primary market, CreekSource LLC brought a $307 million offering. The CLO sold the AAA notes at Libor plus 145 bps.

The deal pipeline has been thin but is expected to fill over the coming months.

“New CLO issuance has been relatively slow thus far in 2015, but we believe the velocity of deals will accelerate,” Barclays analysts said in a note. “We do not see this as a cause for concern and continue to expect 2015 to be a strong year for CLO issuance.”

Barclays said that “secondary pressure on CLO equity has abated, and collateral spreads remain wide enough to support the arb and deal flow.”

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