Morgan Stanley taps CLO market; Capital Four closes new CLO; high-grade secondary active

By Cristal Cody

Tupelo, Miss., Dec. 3 – Morgan Stanley Investment Management Inc. sold $457.25 million of notes in a debut broadly syndicated CLO offering.

Several new issuers have tapped the broadly syndicated and middle-market spaces in 2019, sources report.

On Tuesday, Capital Four CLO Management K/S closed on its previously reported €385 million debut Capital Four CLO I DAC transaction.

Capital Four CLO Management is part of Copenhagen-based credit asset management firm Capital Four Management Fondsmaeglerselskab A/S.

Year to date, new issue dollar-denominated CLO supply totals about $100 billion, while new euro-denominated volume totals more than €28 billion, according to market sources.

Meanwhile, high-grade issues were actively traded in the CBO/CDO/CLO securitized secondary market on Monday, according to Trace data.

During the previous session, $266.35 million of investment-grade CBO/CDO/CLO issues traded at an average price of 98.00.

In its deal, Morgan Stanley Investment Management sold $457.25 million of notes due Jan. 15, 2033 in the firm’s first CLO transaction, according to market sources.

522 Funding CLO I Ltd./522 Funding CLO I LLC priced $279 million of class A-1 floating-rate notes at Libor plus 139 basis points and $13.5 million of class A-2 floating-rate notes at Libor plus 175 bps at the top of the capital stack.

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