U.S. CLO primary action quiets; AXA, Blackstone/GSO close euro deals; secondary active

By Cristal Cody

Tupelo, Miss., Nov. 7 – U.S. CLO market activity quieted on Thursday with some euro-denominated deals reported closing over the session.

AXA Investment Managers, Inc. settled its €373.45 million Adagio VIII CLO DAC transaction that priced in September. The previously reported CLO sold €217 million of the class A senior secured floating-rate notes at Euribor plus 93 basis points.

Also, Blackstone/GSO Debt Funds Management Europe Ltd. closed Thursday on its previously reported €267 million refinancing of notes from the vintage 2017 Palmerston Park CLO DAC transaction.

The CLO priced $233 million of class A-1A-R senior secured floating-rate notes at Euribor plus 65 bps.

Year to date, more than €25 billion of euro-denominated CLOs and about $100 billion of dollar-denominated broadly syndicated CLOs have priced, market sources report.

Elsewhere, after starting the week quietly, secondary trading in the securitized market was strong on Wednesday, according to market sources and Trace data.

During the session, $341.45 million of high-grade CBO/CDO/CLO issues and $111.06 million of lower-rated CBO/CDO/CLO securities traded.

Secondary supply remains elevated compared to 2018 volume, according to a Wells Fargo Securities LLC research note.

Year-to-date average monthly BWIC volume is $3.1 billion, compared to $2.1 billion in 2018.

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