CLO volume up in U.S., Europe; Och-Ziff, GSO/Blackstone, Oak Hill price; euro AAAs widen

By Cristal Cody

Eureka Springs, Ark., Nov. 7 – CLO volume is holding strong in the U.S. and European primary markets in front of the U.S. presidential election and the Dec. 24 risk retention deadline.

In the European market, Och-Ziff Europe Loan Management Ltd. priced €413 million of notes in the firm’s first euro-denominated CLO offering.

GLG Partners LP priced €364 million of notes in the firm’s second euro-denominated CLO transaction this year.

In U.S. primary activity, Oak Hill Advisors LP priced a $609 million CLO.

GSO/Blackstone Debt Funds Management LLC sold $562.18 million of notes in a new CLO transaction.

Also, GC Investment Management LLC priced a $410.9 two-part middle-market CLO.

In refinancing action, Par-Four Investment Management, LLC refinanced $256 million of notes in four tranches from a vintage 2014 CLO.

“The new issue calendar should continue to be active as CLOs print before risk retention rules go effective at the end of December,” J.P. Morgan Securities LLC analysts said in a note released on Monday. “In addition, we reiterate our neutral stance on EUR CLO AAAs and note the +12 [basis points] widening in secondary since last week.”

Euro CLO AAAs were quoted ending Friday a generic 13 bps wider on the week at Euribor plus 125 bps area.

U.S. CLO spreads ended the week mostly flat across the stack with AAAs slightly better.

Secondary activity totaled about $750 million over the previous week, according to a BofA Merrill Lynch note released on Monday.

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