Pretium places $405.8 million CLO; Accunia prices €361.75 million; CLO spreads soften

By Cristal Cody

Tupelo, Miss., June 25 – CLO pricing action continues to remain steady in June in both the U.S. and European primary markets.

Pretium Credit Management LLC priced $405.8 million of notes in the CLO manager’s second new deal of the year.

Accunia Fondsmaeglerselskab A/S tapped the European primary market for the first time this year with a €361.75 CLO transaction.

Meanwhile, spreads in the U.S. CLO secondary market have softened.

AAAs ended Friday about 2 basis points wider on the week in the Libor plus 107 bps area, while BB-rated tranches traded 15 bps weaker on the week in the Libor plus 575 bps area, according to a BofA Merrill Lynch note released Monday.

BWIC volume totaled less than $280 million, a 70% drop from the prior week of more than $1 billion, the note said.

Elevated CLO supply and a softer macro tone around trade war concerns is expected to weigh on spreads in the back half of the year, according to the note. “U.S. CLOs still provide a decent spread compensation relative to other products but spread tightening potentials are limited and the spread tights of 2018 are likely behind us,” BofA Merrill Lynch analysts said in the note.

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