Apollo prices €357 million; MidOcean sells CLO; U.S., Europe secondary trading picks up

By Cristal Cody

Eureka Springs, Ark., May 16 – Details emerged Monday on two new CLO deals priced in the U.S. and European primary markets.

Apollo Management International LLP sold €357 million of notes in a new euro-denominated deal.

The transaction is the first European CLO to price in May, but more are in the pipeline, according to market sources.

In U.S. pricing action, MidOcean Credit Fund Management LP sold a $405.25 million CLO.

“March and April saw an average of $5 [billion] in monthly U.S. CLO volume, which is currently tracking another $5 [billion] in May,” J.P. Morgan Securities LLC analysts said in a note.

In the secondary market, BWIC volumes were strong over the previous week, totaling just over $781 million on strong activity in CLO 2.0/3.0s AAs, As, BBs and equity, according to a BofA Merrill Lynch market note.

“Similar to the previous two weeks, spread tightening in CLO 2.0/3.0s was confined to the investment grade parts of the capital structure with AAs and As both contracting 10 bps [week over week] to 215 and 315 bps, respectively,” BofA Merrill Lynch analysts said.

In European CLO secondary trading, the €110 million of bonds that appeared on BWIC lists in the past week was the highest for two months, according to BofA Merrill Lynch.

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