CELF prices €415 million; NewStar sells middle-market CLO; CLOs improve in secondary trade

By Cristal Cody

Eureka Springs, Ark., Oct. 25 – Details emerged on a new euro-denominated broadly syndicated CLO deal and a new U.S. middle-market offering.

CELF Advisors LLP priced a €415 million CLO in the firm’s second new deal of the year.

In the middle-market space, NewStar Financial, Inc. brought its second deal of 2016 and priced a $505.5 million transaction.

U.S. and European AAA-rated CLO spreads have improved in the secondary market, according to a Wells Fargo Securities, LLC report on Monday.

“The strong technical rally has continued into October,” the Wells Fargo analysts said. “In the secondary market, AAA to BB tranches are currently trading at their 52-week tights, though the month-over-month changes in spreads have become smaller.”

CLO 2.0 AAA-rated notes were trading on average about 4 basis points tighter on the month at Libor plus 138 bps.

In the European CLO secondary market, AAAs have tightened 15 bps from a month ago to Euribor plus 105 bps, according to the note.

CELF Advisors sold €415 million of notes due Jan. 18, 2030 in the new euro-denominated CLO offering, according to a market source.

Carlyle Global Market Strategies Euro CLO 2016-2 DAC priced €232 million of class A-1 senior secured floating-rate notes at Euribor plus 100 bps and €59 million of class A-2 senior secured floating-rate notes at Euribor plus 170 bps at the top of the capital structure.

BofA Merrill Lynch was the placement agent.

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