Palmer Square prices $395.9 million CLO; Redding Ridge offers euro CLO

By Cristal Cody

Tupelo, Miss., July 29 – Palmer Square Capital Management LLC priced a new $395.9 million broadly syndicated CLO transaction this month.

The manager brought the senior tranche at Libor plus 170 basis points.

The manager has sold four new broadly syndicated CLOs and one vintage refinancing transaction year to date.

Meanwhile, Redding Ridge Asset Management (UK) LLP is offering a new €398.1 million CLO in the manager’s second euro-denominated broadly syndicated deal this year.

In other activity on Wednesday, Kayne Anderson Capital Advisors, LP closed on its previously reported $292,575,000 Kayne CLO 8 Ltd./Kayne CLO 8 LLC offering. The CLO had priced the class A-1 floating-rate notes at Libor plus 170 bps.

Also on Wednesday, CIFC Asset Management LLC closed on its $497 million CIFC Funding 2020-I, Ltd./CIFC Funding 2020-I, LLC transaction.

The CLO sold $290 million of the class A-1 floating-rate notes at Libor plus 170 bps.

About $42 billion of new CLOs and about €10 billion of euro-denominated supply has priced year to date, according to market sources.

Palmer Square brings CLO

Palmer Square Capital Management priced $395.9 million of notes due July 15, 2031 in the transaction, according to a market source.

Palmer Square CLO 2020-2 Ltd./Palmer Square CLO 2020-2, LLC sold $244 million of class A-1a floating-rate notes at Libor plus 170 bps at the top of the capital structure.

Barclays was the placement agent.

The notes are backed primarily by broadly syndicated first-lien senior secured loans.

Palmer Square Capital is an investment management firm based in Leawood, Kan.

Redding Ridge in market

Redding Ridge Asset Management’s deal includes €398.1 million of notes due Jan. 15, 2032, according to a market source.

The RRE 4 Loan Management DAC offering is expected to include €232 million of class A-1 senior secured floating-rate notes (Aaa), €30 million of class A-2-a senior secured floating-rate notes (Aa2) and €10 million of class A-2-b senior secured fixed-rate notes (Aa2).

Further down the stack, the CLO is expected to offer €45.6 million of class B senior secured deferrable floating-rate notes, €26 million of class C senior secured deferrable floating-rate notes, €14 million of class D senior secured deferrable floating-rate notes and €34.2 million of subordinated notes.

J.P. Morgan Securities plc is the placement agent.

The notes are collateralized primarily by broadly syndicated senior secured obligations.

The deal is expected to close Aug. 27.

The London-based firm is part of Redding Ridge Asset Management, LLC, a New York City-based asset management company established in 2016 by Apollo Global Management, LLC.

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