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THL Credit prices $656M CLO

Morgan Stanley today priced an upsized $655.5 million CLO managed by THL Credit Senior Loan Strategies, according to market sources. This is the manager’s second CLO of the year.

The transaction is structured with the intent to comply with U.S. risk retention with a majority-owned affiliate (MOA) of the manager retaining a 5% vertical slice, according to analysts at Fitch Ratings.

Pricing details are as follows:

Up to 60% of the loans in the portfolio can be covenant-lite, according to Fitch.

The transaction will settle on Nov. 1 with a non-call period running for two years after the settlement and a reinvestment period for four years following the close.

Year-to-date issuance is now $44.53 billion from 100 transactions, according to LCD data. September issuance is now $6.69 billion from 13 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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US CLO Issuance Totals $5.86B in August, Unchanged from July

US CLO issuance

Issuance of U.S. collateralized loan obligation vehicles in August clocked in at $5.86 billion, in line with the $5.76 billion during the previous month, according to LCD, an offering of S&G Global Market Intelligence.

Year-to-date, CLO issuance totals $37.84 billion, down noticeably from the $73.3 billion at this point last year and from the $85.7 billion at this point in 2014 (there was a record $124 billion in issuance that year).

CLOs, of course, are a major source of leveraged loan demand. CLO issuance has declined in recent months as stricter capital requirements are set to take effect at year-end. (You can read more about how CLOs work here.) – 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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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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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

 

 

 

 

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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

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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.