Aegon prices $510.5 million CLO in its first deal since 2016; secondary volume strong

By Cristal Cody

Tupelo, Miss., Feb. 12 – Aegon USA Investment Management LLC priced a $510.5 million CLO in its first transaction in the primary market since 2016.

CLO new issue and refinancing activity has been busy year to date with more than $7 billion of new CLOs priced and more than $14 billion of vintage CLOs repriced, according to market sources.

Elsewhere, securitized secondary trading was strong during the previous week.

On Friday, $155.89 million of investment-grade CBO/CDO/CLO issues and $124.02 million of lower-rated CBO/CDO/CLO securities were traded, while Thursday’s session saw a hefty $455.6 million of high-grade securities and $490.85 million of non-investment-grade issues traded, according to Trace data.

Aegon USA Investment Management priced $510.5 million of notes due Jan. 20, 2031 in the Cedar Funding VII CLO Ltd./Cedar Funding VII CLO LLC transaction, according to a market source.

The CLO sold $297.5 million of class A-1 floating-rate notes at Libor plus 100 basis points and $17.5 million of class A-2 floating-rate notes at Libor plus 115 bps in the senior tranches.

Credit Suisse Securities (USA) LLC arranged the transaction.

Aegon was last in the CLO primary market in 2016 with two deals.

The Cedar Rapids, Iowa-based firm is part of The Hague, Netherlands-based Aegon Group.

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