Ares, Palmer Square, Triumph Capital, Vibrant price new CLOs; spreads leak wider

By Cristal Cody

Tupelo, Miss., July 13 – CLO managers including Ares Management LLC, Palmer Square Capital Management LLC, Triumph Capital Advisors, LLC and Vibrant Credit Partners, LLC priced new transactions.

Supply year to date and in July has been strong.

“Despite the midweek U.S. holiday last week, CLO supply has continued full steam ahead in July,” Wells Fargo Securities LLC analysts said in a note on Friday. “Month to date, we count 25 U.S. deals that have priced across new issue, refis, resets and reissues.”

So far, eight new issue CLOs totaling $3.7 billion have priced in July, bringing total new issue volume to $72 billion year to date, according to the note.

CLO spreads have leaked wider on the strong supply with U.S. AAA-A spreads 5 basis points to 10 bps weaker from a month ago and 15 bps to 30 bps wide of their February tights, according to the note.

In its deal, Ares Management priced $511.6 million of notes due July 22, 2030 in the Ares XLIX CLO Ltd./Ares XLIX CLO LLC transaction, according to a market source.

The deal included $290 million of class A-1 floating-rate notes (AAA/AAA) that priced at Libor plus 107 bps.

Natixis Securities Americas LLC is the placement agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.