CLO middle-market volume rises; NewStar prices $397.25 million; secondary spreads flat

By Cristal Cody

Tupelo, Miss., Feb. 27 – Two more middle-market CLO deals have priced, bringing total volume year to date to nearly $2 billion, according to market sources on Monday.

NewStar Financial, Inc. sold $397.25 million of notes at par in the firm’s new middle-market offering.

Also, Madison Capital Funding LLC priced the $303 million MCF CLO V LLC middle-market deal via Wells Fargo Securities LLC, a source said. The AAA-tranche priced at Libor plus 190 basis points. Final pricing details were not available by press time.

In new broadly syndicated CLO issuance, GSO/Blackstone Debt Funds Management LLC priced $611.37 million of notes due April 20, 2030 in the Grippen Park CLO Ltd./Grippen Park CLO LLC transaction, according to a market source.

KKR Financial Advisors II, LLC priced $609 million of notes due March 15, 2029 in the KKR CLO 17 Ltd./KKR CLO 17 LLC transaction.

Ares Management LP subsidiary Ares CLO Management LLC priced $409.45 million of notes due 2028 in the Ares XLII CLO Ltd./Ares XLII CLO LLC deal.

Also, Alcentra NY LLC sold $510 million of notes in the Shackleton 2017-X CLO, Ltd. deal.

Final pricing details were not available by press time.

About $7 billion of new broadly syndicated CLOs have priced year to date, according to a BofA Merrill Lynch note.

CLO spreads ended the week unchanged across the capital stack but are tighter on the year.

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