CLO deal pipeline active; Carlson Capital preps its first CLO of 2016; secondary volume up

By Cristal Cody

Eureka Springs, Ark., Sept. 23 – The CLO deal pipeline remains active, with another issuer planning a new CLO offering.

Carlson Capital, LP intends to price $404.15 million of notes in the firm’s first CLO deal of the year.

Other CLO managers expected to price new CLOs include THL Credit Advisors LLC, Zais Group, LLC and Credit Suisse Asset Management, LLC.

Nearly $48 billion of CLOs have priced year to date, according to Prospect News data.

Secondary trading volume was strong on Thursday with $297.26 million traded in 46 high-grade CBO/CDO/CLO issues and $236.76 million traded in 37 non-investment-grade CBO/CDO/CLO securities, according to Trace.

Carlson Capital plans to price $404.15 million of notes due Oct. 17, 2028 in the Cathedral Lake IV Ltd./Cathedral Lake IV LLC transaction, according to a market source.

The deal includes $239 million of class A floating-rate notes (AAA); $64 million of class B floating-rate notes (AA); $25 million of class C deferrable floating-rate notes (A); $21 million of class D deferrable floating-rate notes (BBB); $10 million of class E-1 deferrable floating-rate notes (BB-); $9 million of class E-2 deferrable floating-rate notes (BB-) and $36.15 million of subordinated notes.

Jeffries LLC is the placement agent.

Carlson Capital was last in the primary market in 2015 with two CLO deals.

The alternative asset management firm is based in Dallas.

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