May CLO primary market steady; Rothschild brings deal; recent pricings ‘on the wider side’

By Cristal Cody

Eureka Springs, Ark., May 25 – May continues to see primary action in the CLO markets, with one deal brought during the week, according to market sources on Wednesday.

Rothschild North America priced a $305.5 million broadly syndicated CLO offering on Monday, according to a market source.

Rothschild, which acquired CLO manager West Gate Horizons Advisors, LLC of Los Angeles in 2015, priced the Ocean Trails VI deal via Nomura Securities International, Inc.

Final pricing details were not available by press time.

May already has seen issuance totaling more than $4 billion, according to Prospect News data.

“The new issue trickle keeps going,” Bjarni Torfason, CLO analyst with Deutsche Bank Securities Inc., said in a note released on Wednesday. “Three deals priced last week, as in the week before, and this week we have seen one deal price.

“The pricing has been on the wider side recently as the deals issued have been brought to market by less frequent issuers. In the secondary market, spreads have been firming slightly at the top of the stack whereas in the junior mezzanine tranches spreads are softening slightly.”

THL Credit Advisors LLC priced the AAA-rated tranche in the $608.3 million THL Credit Wind River 2016-1 CLO Ltd./THL Credit Wind River 2016-1 LLC deal a week ago at Libor plus 165 basis points.

On May 17, Newfleet Asset Management, LLC priced the AAA tranche in the $356.3 million Newfleet CLO 2016-1, Ltd. offering at Libor plus 185 bps.

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