CSAM, GoldenTree, Ares in CLO deal pipeline; new managers eye U.S. primary market

By Cristal Cody

Tupelo, Miss., Jan. 18 – CLO deal volume revved up on Friday with details out on three new transactions being offered in the U.S. and European primary markets.

Credit Suisse Asset Management Ltd. plans to tap the European primary market in its first CLO transaction of 2019. The CLO manager is offering €407.4 million of notes.

In the U.S. market, GoldenTree Asset Management LP plans to price a $757 million CLO.

Also, Ares Management LLC intends to bring a $507.05 million CLO to the primary market.

Fitch Ratings said in a report on Friday that 11 managers issued new CLOs in the U.S. market in 2018.

The ratings agency “has already conducted operational reviews on five managers that we expect to issue new broadly syndicated loan or middle market CLOs in 2019,” Fitch said.

CSAM to price

Credit Suisse Asset Management is offering €407.4 million of notes due Jan. 15, 2032 in the deal, according to a market source and ratings report from Fitch.

The Cadogan Square CLO XIII DAC offering includes €1.5 million of class X floating-rate notes (//AAA); €246 million of class A floating-rate notes (//AAA); €40 million of class B floating-rate notes (//AA); €26 million of class C fixed-rate notes (//A); €26 million of class D floating-rate notes (//BBB-); €22 million of class E floating-rate notes (//BB-); €9 million of class F floating-rate notes (//B-) and €36.9 million of subordinated notes.

Barclays is the placement agent.

The deal is backed primarily by euro-denominated senior secured obligations.

The offering is expected to close on March 20.

Credit Suisse Asset Management, a subsidiary of Zurich-based Credit Suisse AG, priced three euro-denominated CLOs in 2018.

GoldenTree CLO on tap

GoldenTree Asset Management plans to price $757 million of notes due April 24, 2031 in its CLO deal, according to a market source and a ratings report from Fitch.

The GoldenTree Loan Management US CLO 4 Ltd./GoldenTree Loan Management US CLO 4, LLC deal includes $5.5 million of class X floating-rate notes (//AAA); $446.25 million of class A floating-rate notes (//AAA); $37.5 million of class A-J floating-rate notes (//AAA); $65.5 million of class B floating-rate notes; $63.75 million of class C floating-rate notes; $43.25 million of class D floating-rate notes; $27.25 million of class E floating-rate notes; $15.5 million of class F floating-rate notes and $52.5 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

The transaction is backed entirely by broadly syndicated first-lien senior secured loans.

The offering is expected to settle on March 6.

The New York City-based private investment firm priced one new issue U.S. CLO deal in 2018.

Ares eyes CLO

Ares Management’s Ares LI CLO Ltd./Ares LI CLO LLC transaction includes $507.05 million of notes due April 15, 2031, according to a market source and ratings reports from Moody’s Investors Service and S&P Global Ratings on Friday.

The deal includes $295 million of class A-1 senior secured floating-rate notes (Aaa/AAA); $30 million of class A-2 senior secured floating-rate notes (Aaa/non-rated); $47.25 million of class B senior floating-rate notes (non-rated/AA); $33 million of class C mezzanine deferrable floating-rate notes (non-rated/A); $28.75 million of class D mezzanine deferrable floating-rate notes (non-rated/BBB-); $22.25 of class E mezzanine deferrable floating-rate notes (Ba3/non-rated) and $50.8 million of subordinated notes.

BNP Paribas Securities Corp. is the placement agent.

Ares CLO Management LLC will be the CLO manager.

The CLO is backed primarily by broadly syndicated senior secured corporate loans.

The offering is expected to close on March 7.

Ares Management is an alternative asset management firm based in Los Angeles.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.