Madison Park CLO for $440 million seen pricing next week; CLOs eyed for corporate refi

By Rebecca Melvin

New York, April 29 – Credit Suisse Asset Management LLC plans to price the Madison Park Funding XVII Ltd./Madison Park Funding XVII CLO for $440 million in the early part of the May 4 week, a market source said.

Wells Fargo is the placement agent for the Madison Park XVII deal.

Also heard in the market is the $565.65 million OZLM XII, Ltd./OZLM XII, LLC CLO being priced by Och-Ziff Loan Management LLP as manager and with J.P. Morgan Securities LLC as placement agent.

Otherwise no new deals were heard in the CLO market. So far the month’s U.S. new issue tally includes Apollo Credit, Babson, Symphony, Zais, JFIN Revolver, Palmer Square, Jackson Mill, AMMC, NEXT Capital TICP CLO and Allegro, according to Prospect News data.

Even with lower new issuance volume forecast for this year, speculative-grade debt refinancing needs will likely be satisfied by CLO investment capacity and other investors, according to a special note by Moody’s Investors Service published Wednesday.

New CLO issuance is expected to decline this year because of the Dodd-Frank risk-retention rule and rising interest rates.

Still if its assumptions hold, the rating agency said new CLO issuance volume will be sufficient to meet a substantial portion of corporate refinancing needs through 2019.

© 2015 Prospect News.
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