Bank of America Merrill Lynch today priced a $416.5 million CLO for Brigade Capital Management, according to market sources.
The transaction is structured as follows:
The non-call period ends on April 17, 2016, the reinvestment period ends on April 17, 2018 and the legal final maturity is April 17, 2026.
Including Brigade’s deal, YTD CLO issuance rises to $14.62 billion from 29 deals, according to LCD, while six deals have priced in March for $3.14 billion. – Sarah Husband
Credit Suisse has priced the $326.5 million ING IM CLO 2012-1 for ING Alternative Asset Management, according to market sources. The transaction priced at par across all tranches.
The transaction, which marks the fourth refinancing this year, is structured as follows:
The original $361.9 million transaction priced in March 2012, also via Credit Suisse, with LCD reporting at the time that the triple-A and double-A tranches priced at par.
The refinancing reduces the coupons across all the debt tranches, as well as allowing for some amendments to the transaction’s documentation. Accordingly, the bond bucket will be removed, while the covenant-lite bucket will be increased to 60%, in line with the current market standard. Finally, no additional tranche-by-tranche refinancings are permitted going forward.
As per previous refinancings this year, the reinvestment period is unchanged and ends on March 14, 2015. The final maturity date is March 14, 2022. – Sarah Husband
Citigroup today priced a roughly $420 million CLO for Onex Credit Partners, according to sources.
The deal is structured as follows:
With Onex’s deal, CLO issuance in the year to date grows to $11.91 billion across 24 deals, according to LCD. It is the first print in March, following on $8.94 billion of issuance last month. – Staff reports
In February, the amount of S&P/LSTA Index loans outstanding – a proxy for syndicated loans held by CLOs, mutual funds, and other non-bank investors – topped $700 billion for the first time, at $701.5 billion. That’s up from $689.6 billion a month earlier and $682.5 billion at year-end.
Since touching a post-credit-crunch low of $494.9 billion in February 2011, the par amount of outstanding S&P/LSTA Index loans has expanded 42%.
You can read more about the Index here.
Morgan Stanley today priced a $726.5 million CLO for Carlyle Investment Management, according to market sources.
The deal is structured as follows:
Earlier this week Carlyle’s European CLO management business, CELF Advisors priced an upsized €375 million CLO via Credit Suisse, making it the second manager to price new CLOs on both sides of the Atlantic this year.
The CLO has a 2.1-year non-call period and a 4.1-year reinvestment period.
With Carlyle’s deal, 16 CLOs have priced in February totaling $8.22 billion, according to LCD. Issuance in the year to date stands at $10.77 billion across 21 deals. – Sarah Husband
Credit Suisse today priced a $669.75 million CLO for Invesco Senior Secured Management, according to market sources.
The deal, which sources say was upsized, is structured as follows:
The final maturity date is April 18, 2026.
With Invesco’s deal, 14 CLOs have priced in February totaling $7.04 billion, according to LCD. Issuance in the year to date stands at $9.59 billion across 19 deals. – Sarah Husband
A group of 17 Democratic members of Congress yesterday submitted a letter to the five federal agencies responsible for the Volcker Rule, urging regulators to issue guidance around the term “ownership interest” in the final Rule as it pertains to CLOs.
The letter is spearheaded by House Financial Services Ranking Member Maxine Waters (D-Calif.) and Subcommittee on Capital Markets Ranking Member Carolyn Maloney (D-NY), and is signed by 15 additional Democratic members.
A copy of the letter is attached.
The letter follows recent House Financial Services Committee hearings on the Volcker rule, during which Federal Reserve Chair Janet Yellen and Daniel Tarullo, a member of the central bank’s board of governors, both indicated they are looking at the issue. – Sarah Husband
Muscular technical conditions persisted in the leveraged loan market through late January, shielding it from most of the weakness that infiltrated the equity and high-yield markets after 2013’s red-hot finish. By early February, however, tone weakened around the margins as retail-cash inflows slowed and high-yield funds faced redemptions.
Visible inflows to the loan market eased to a 17-month low of $7.1 billion in January from $11.3 billion in December. A dearth of CLO issuance was responsible for the drop (though there are signs of life in that market this week).
The consensus among managers who attended the CLO conference in Las Vegas last week is that January’s slow start may be a sign of soft CLO volume in 2014. As of Jan. 30, five managers have printed vehicles worth $1.9 billion (excluding repricing deals such as Apollo’s ALM V), the lowest monthly total in 23 months.
Jefferies yesterday priced a $416.75 million CLO for Acis Capital Management, an affiliate of Highland Capital Management, according to market sources.
The transaction is the first new CLO to price this year, and is structured as follows:
The deal has a two-year non-call period, and a five-year reinvestment period. – Sarah Husband