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Download LCD’s Middle Market Weekly – Free

LCD’s Middle Market Weekly offers comprehensive news, analysis, charts, and data detailing the U.S. Middle Market lending segment.

Here’s some of what you’ll receive in each Middle Market Weekly:

 

middle market weekly

  • New-issue volume (institutional, pro rata)
  • Middle market snapshot (pricing, yield, fees)
  • Middle market credit stats (debt/EBITDA, 1st-/2nd-lien)
  • Middle market covenant-lite activity
  • Full middle market stats: by purpose, industry, fund flows)
  • Middle market wrap-up/analysis: deals, trends, developments
  • Private Equity Squawk Box: small/midsize PE deals during the week

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LCD is an offering of S&P Global Market Intelligence.

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European CLO Issuance Hits 2.0-Era High of €2.56B

European CLO issuance

Those predicting a post-Brexit referendum surge of European CLO issuance appear to have called it right—at least over the near term—with July racking up the highest monthly issuance tally in the 2.0 era.

Following the vote there were some concerns that the market would halt as investors hugged the sidelines, given the uncertainty. But the relative calm and stability of the broader markets kept players active, enabling issuers prevented from accessing the primary ahead of the vote to price transactions.

All told, July’s supply reached €2.56 billion, well above the €1.82 billion notched up during March, the next-busiest month this year. The previous monthly volume record in the 2.0 era was June 2014, which hosted €2.49 billion of supply, according to LCD. – Sarah Husband/Andrew Park

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Babson Prices $411M Risk-Retention Compliant (Europe) CLO

Morgan Stanley on Friday priced a $411 million CLO managed by Babson Capital Management, according to market sources.

The transaction has been structured to comply with European risk retention with the manager retaining a 5% vertical slice.

Pricing details are as follows:

Babson CLO

Up to 65% of the loans in the portfolio can be covenant-lite, according to the marketing documents.

The transaction will settle on Aug. 25 with a non-call period running for two years after and reinvestment period running four years after the close.

Year-to-date issuance is now $31.98 billion from 74 transactions, according to LCD data. July’s totals are $5.76 billion from 12 CLOs. — Andrew Park

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Free Download: LCD’s CLO Weekly Review

LCD’s CLO Weekly Review offers comprehensive news, trend analysis, charts, and calendars detailing the U.S. and European collateralized loan obligation markets.

Here’s some of what’s you’ll receive in each CLO Weekly Review.

CLO snapshot

 

  • Details on recent CLO Global CLO issuance, including pricing
  • CLO issuance, vs outstandings
  • Near-term CLO pipeline
  • US, European market wrap-ups
  • LCD’s CLO Dashboard: risk retention, primary/secondary spreads
  • LCD’s Loan Market Snapshot: Issuance, outstandings, defaults, prices

 

 

 

 

Want to check it out?

Download a complimentary copy of the CLO Weekly here. (We’ll send you a link.)


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LCD is an offering of S&P Global Market Intelligence.

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Free Download: LCD’s CLO Weekly Review

LCD’s CLO Weekly Review offers comprehensive news, trend analysis, charts, and calendars detailing the U.S. and European collateralized loan obligation markets.

Here’s some of what’s you’ll receive in each CLO Weekly Review.

CLO snapshot

 

  • Details on recent CLO Global CLO issuance, including pricing
  • CLO issuance, vs outstandings
  • Near-term CLO pipeline
  • US, European market wrap-ups
  • LCD’s CLO Dashboard: risk retention, primary/secondary spreads
  • LCD’s Loan Market Snapshot: Issuance, outstandings, defaults, prices

 

 

 

 

Want to check it out?

Download a complimentary copy of the CLO Weekly here. (We’ll send you a link.)


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LCD is an offering of S&P Global Market Intelligence.

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GreensLedge Prices $433M Anchorage Credit Funding CDO

GreensLedge Capital Markets today priced a $433 million CDO for Anchorage Capital Group, according to market sources.

Natixis Securities Americas was also a co-lead manager on the transaction.

Pricing details are as follows:

Anchorage CDO 2016-07-22

Similar to Fortress’s $633.6 million FDF Limited II, which priced on April 15, the transaction can hold up to 65% in second-lien loans and unsecured bonds.

The transaction will close on Aug. 29 with a non-call period ending on Oct. 28, 2018 and a reinvestment period ending on Oct. 28, 2021. The legal final maturity is on Oct. 28, 2033. — Andrew Park

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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3i DM prices €452M CLO via Credit Suisse

Credit Suisse today priced a €452 million CLO managed by 3i Debt Management Limited, according to market sources.

Pricing details are as follows:

The transaction has been structured as an originator CLO following the European referendum vote. The manager had previously only issued sponsor transactions to meet the European risk-retention requirements.

The closing date is on September 14 with a non-call period running until October 15, 2018 and reinvestment period until October 15, 2020. The final maturity is on October 15, 2029.

This is the second European CLO for 3i this year, having closed the €413 million Harvest XV CLO on May 12. This was structured as a sponsor transaction, with 3i retaining at least 5% of the transaction via the equity tranche. For Volcker, the transaction included voting, non-voting, and non-voting exchangeable tranches.

To date the manager has issued eight European CLO 2.0s since September 2013. As of Sept. 30, 2015, 3i DM managed 35 funds and had total assets under management of roughly $11.3 billion.

Year-to-date issuance is €8.95 billion from 22 transactions. This is the fourth CLO in Europe for a total of €1.74 billion. — Staff reports

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Credit Suisse Asset Mgmt Prices Hefty $814M CLO

Citi on Friday priced an $814.25 million CLO for Credit Suisse Asset Management, the manager’s second CLO of the year, according to market sources.

The manager will retain a 5% vertical slice in order to comply with U.S. risk retention.

Pricing details are as follows:

The transaction will close on August 25, with a non-call period ending in July 2018 and reinvestment period ending in July 2021. The stated maturity is in July 2029.

Year-to-date issuance is now $28.83 billion from 67 CLOs, according to LCD data. July’s totals are now $2.6 billion from five transactions. — Andrew Park

Follow Andrew and LCD News on Twitter

This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Fed Extends ‘Volcker Rule’ Deadline, Giving CLO Market Breathing Room

The Board of Governors of the Federal Reserve has extended the deadline for banks to comply with the Volcker Rule for one additional year until July 21, 2017.

quarterly CLO issuance

CLOs under the final Dodd-Frank rules in December 2013 were classified as “covered funds” if they include bonds in their collateral pool. Depository institutions or other companies affiliated with an insured depository institution are prohibited from trading non-compliant CLOs in their own book or retaining them.

The Federal Reserve Board in December 2014 previously extended the compliance deadline to July 21, 2016 and at that time expressed its openness to a further extension, which was formally announced yesterday.

The additional extensions have been important for both banks and CLO managers as banks have not been forced to sell non-compliant CLOs while also working with CLO managers to issue compliant structures since the rule was announced to minimize the impact, the LSTA said in response to the announcement.

The Federal Reserve Board reached its conclusion to allow for the extension after also consulting with the Office of Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC). — Andrew Park

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Post-1.0, Pre-Brexit: European CLO Issuance Hits Record €4.56B in 2Q

European CLO issuance

CLO issuance in Europe rose to €4.56 billion in the second quarter from €2.64 billion in the first, marking the highest such volume in the European ‘2.0’ market’s brief three-year history, according to LCD, an offering of S&P Global Market Intelligence.

The improved market sentiment going into the second quarter — and the strong motivation among arrangers to de-risk from the warehouses amassing on their balance sheets via the CLO take out — helped fuel issuance from March onward.

But the key factor was the abundance of triple-A appetite, much of it flowing out of Asia, which intensified the competition for senior paper and helped drive senior liability spreads down to E+128, from E+150 at the start of the year.

But if AAA demand was abundant, loan supply was less so, and this was cited as a key concern by managers during the past quarter. Managers also had to handle increasing opportunistic transactions, although the Brexit vote has put an end to the flow of refinancings for now.

June had racked up a healthy volume of €1.64 billion, and was set to go higher still until the Brexit vote brought supply to a temporary halt, leaving year-to-date issuance at €7.21 billion. – Sarah Husband

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.