CSAM prices $615 million CLO; Sankaty brings $506.9 million; Crestline Denali in pipeline

By Cristal Cody

Tupelo, Miss., Feb. 24 – Credit Suisse Asset Management, LLC tapped the CLO market with a $615,025,000 deal, while Sankaty Advisors LLC brought a $506.9 million offering, according to market sources on Tuesday.

Coming up in the primary market, Crestline Denali Capital, LP intends to offer a $413.7 million transaction.

BofA Merrill Lynch CLO strategists expect as much as $75 billion to $90 billion in new CLO issuance over the year.

“True to form, although 2015 began slowly, the last several weeks have seen a flurry of activity,” BofA Merrill Lynch analysts said in a market note. “And with little primary loan issuance, CLOs have been a key buyer of loans in the secondary market.”

Credit Suisse Asset Management priced $615,025,000 of notes due April 20, 2026 in the Madison Park Funding XVI Ltd./Madison Park Funding XVI LLC CLO offering, according to a market source.

The CLO sold $367,275,000 of class A-1 senior secured floating-rate notes at Libor plus 150 basis points at the top of the eight-tranche capital structure.

At the bottom of the stack, the CLO priced $12 million of class E deferrable floating-rate notes at Libor plus 590 bps.

BofA Merrill Lynch was the placement agent.

Credit Suisse Asset Management will manage the CLO.

The firm is a unit of Credit Suisse Group AG.

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