CLO issuance hits $41.7 billion year-to-date; Carlyle, BlueMountain set to bring CLO deals

By Cristal Cody

Tupelo, Miss., June 14 - New issuance in the collateralized loan obligation market, including deals backed by broadly syndicated and middle market collateral, reached $41.7 billion in 84 transactions priced year-to-date, according to a market source on Friday.

More than $16 billion of CLO issuance is in the pipeline, sources report.

Carlyle Investment Management LLC firmed details for a $516.9 million collateralized loan obligation of notes due July 15, 2025, according to an informed source.

Also coming up, BlueMountain Capital Management LLC is expected to price $410.4 million of notes due Jan. 15, 2025 in a CLO offering later in the month, a market source said on Friday.

BlueMountain Capital Management sold a $514.2 million CLO, BlueMountain CLO 2013-1 Ltd./BlueMountain CLO 2013-1 LLC, in May.

The CLO market remains popular with no "pressure to raise cash," Barclays analysts said in a note on Friday.

Looking at full May data, CLO issuance was curtailed the previous month and visible inflows fell short of the first quarter's sky-high levels, S&P Capital IQ said on Friday.

"In all, investors put $10.7 billion to work in the asset class in May, including $4.9 billion of new CLO prints and $5.8 billion in retail mutual fund subscriptions."

Carlyle to sell nine tranches

The offering notes due July 15, 2025 from Carlyle Global Market Strategies CLO 2013-3, Ltd./ Carlyle Global Market Strategies CLO 2013-3, LLC includes $249 million of class A-1A senior secured floating-rate notes (Aaa//); $75 million of class A-1B senior secured floating-rate notes (Aaa//); $31 million of class A-2A senior secured floating-rate notes; $15 million of class A-2B senior secured fixed-rate notes; $43 million of class B senior secured deferrable floating-rate notes; $24 million of class C senior secured deferrable floating-rate notes; $24.5 million of class D senior secured deferrable floating-rate notes and $10 million of class E senior secured deferrable floating-rate notes.

The transaction also includes a $45.4 million tranche of subordinated notes.

Citigroup Global Markets Inc. is the placement agent.

Carlyle Investment Management will manage the CLO.

The Washington, D.C.-based global alternative asset manager has sold two additional dollar-denominated CLOs in 2013.

BlueMountain plans deal

BlueMountain CLO 2013-2 Ltd./BlueMountain CLO 2013-2 LLC is expected to sell $410.4 million of notes due Jan. 15, 2025, a market source said on Friday.

The deal includes $248.6 million of class A notes (/AAA/); $44.2 million of class B notes (/AA/); $34 million of class C deferrable notes (/A/); $20.3 million of class D deferrable notes (/BBB/); $17.6 million of class E deferrable notes (/BB/); $12.8 million of class F deferrable notes (/B/); and $32.9 million of subordinated notes.

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

BlueMountain Capital Management will be the CLO manager.

The offering is expected to close on July 18.

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