THL, Newfleet, DFG price new CLOs; deal pace picks up; AAAs flat, mezzanine spreads soften

By Cristal Cody

Eureka Springs, Ark., May 24 – Details emerged on new CLO transactions priced in May by THL Credit Advisors LLC, Newfleet Asset Management, LLC and DFG Investment Advisors, Inc.

THL Credit Advisors priced a $608.3 million CLO.

Newfleet Asset Management raised $356.3 million in a debut CLO transaction.

DFG Investment Advisors tapped the primary market with a $406 million offering.

Looking ahead, TCI Capital Management, LLC is in the deal pipeline with a $408.75 million CLO transaction.

The pace of issuance has risen in May with CLO volume of $17.9 billion year to date, according to a Wells Fargo Securities, LLC market note on Tuesday.

“With more than a month remaining in Q2, issuance for the quarter ($9.7 billion) has outpaced the first quarter of the year ($8.2 billion),” Wells Fargo analysts said in the note. “Year-to-date issuance is currently 38% of 2015 year-to-date issuance.”

CLO manager tiering remains pronounced in the primary market with AAA coupons ranging from Libor plus 155 basis points to Libor plus 185 bps, according to the report.

“The pickup in primary supply may have been a contributing factor to the softer levels in deep mezz last week, as BB spreads are 50 bps wider than late April and single-B spreads are 100 bps wider than recent tights [in secondary trading],” the Wells Fargo analysts said.

AAAs were quoted flat on the month in the secondary market at Libor plus 155 bps.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.