CarVal brings $512.25 million CLO in maiden deal; high-grade securitized trading active

By Cristal Cody

Tupelo, Miss., June 13 – CarVal CLO Management, LLC closed Tuesday on $512.25 million of notes in the manager’s first broadly syndicated CLO transaction.

Elsewhere, activity in the financial markets stayed fairly quiet on Wednesday with investors mostly focused on the Federal Reserve’s rate hike announced during the session. The Fed said it would raise rates by 25 basis points on the back of stronger labor and economic activity.

In the securitized secondary market, trading has been heavy in high-grade CDO/CBO/CLO issues over the past two sessions.

On Monday, $303.38 million of investment-grade securities were traded, while $271.32 million of issues traded on Tuesday, according to Trace.

In lower-rated CDO/CBO/CLO securities, $18.7 million of notes traded Monday. Trading volume improved to $92.99 million on Tuesday.

CarVal CLO Management priced $512.25 million of notes due July 16, 2031 in the CarVal CLO I Ltd. deal, according to a market source.

CarVal CLO I sold $320 million of class A senior secured floating-rate notes at Libor plus 116 bps in the senior tranche.

J.P. Morgan Securities LLC was the placement agent.

The CLO is collateralized primarily by senior secured corporate loans.

CarVal is a credit management investment firm and part of Minneapolis-based CarVal Investors, LLC, an independent subsidiary of Cargill, Inc.

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