Carlyle prices $559.4 million notes in manager’s second CLO deal; secondary active

By Cristal Cody

Tupelo, Miss., June 20 – Carlyle CLO Management LLC priced $559.4 million of notes in the manager’s second new dollar-denominated broadly syndicated CLO offering of 2019.

The CLO manager priced the class A-1 notes at Libor plus 128 basis points, 4 bps tighter than where it placed the class A-1a tranche in its first new deal of the year, the Carlyle US CLO 2019-1 Ltd./Carlyle US CLO 2019-1 LLC transaction issued on April 1.

Year to date, about $50 billion of dollar-denominated broadly syndicated CLOs have priced, according to market sources.

Meanwhile, in the securitized secondary market, prices declined for non-high-grade CBO/CDO/CLO issues in the previous session.

The average trading price for high-grade securities on Wednesday was 99.50, according to Trace data.

Non-high-grade CBO/CDO/CLO issues had an average 76.10 trading price.

The average price on the top five trades in lower rated securities was 98.70 in the previous session, Trace reported. The average price on the top five trades for the high-grade issues was 100.30.

Secondary market volume on Wednesday included $362.11 million of high-grade CBO/CDO/CLO issues and $164.38 million of lower-rated issues.

Looking at earlier in the week, the average trading price on high-grade securities on Tuesday was 99.30, while non-high-grade CBO/CDO/CLO issues had an average 91.70 trading price.

On Monday, the high-grade securities had an average trading price of 99.60, and the lower-rated issues traded at an average 95.50.

Secondary market volume on Tuesday totaled $306.64 million from high-grade CBO/CDO/CLO issues and $170.78 million from lower-rated CBO/CDO/CLO securities.

On Monday, about $128.43 million of investment-grade issues and $39.64 million of non-high-grade issues traded.

Carlyle brings second CLO

Carlyle CLO Management priced $559.4 million of notes due July 25, 2032 in the new Carlyle US CLO 2019-2 Ltd./Carlyle US CLO 2019-2 LLC transaction, according to market sources.

The CLO sold $352 million of the class A-1 floating-rate notes at Libor plus 128 bps.

BofA Securities, Inc. was the placement agent.

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

Carlyle has priced two new issue CLOs year to date.

The CLO manager brought four dollar-denominated broadly syndicated CLOs to the market in 2018.

The asset management firm is an affiliate of Washington, D.C.-based Carlyle Group.

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