Cerberus, American Capital price; U.S. CLO AAAs widen, Europe AAAs firm over month

By Cristal Cody

Tupelo, Miss., Nov. 25 – The middle-market and broadly syndicated CLO market saw new issuance from Cerberus Capital Management, LP and American Capital CLO Management, LLC.

Middle-market CLO manager Cerberus Capital Management priced $405.61 million of notes, with the AAA tranche placed at Libor plus 190 basis points, according to a market source.

American Capital CLO Management brought $410,796,000 of notes in its Rule 144A-eligible transaction, the firm’s fifth post-financial crisis CLO deal and sixth total CLO offering, according to a company statement on Tuesday.

The CLO sold the AAA-rated tranche of notes at Libor plus 160 bps.

American Capital Management said the firm’s retention of a control equity investment in the CLO is intended to make the vehicle compliant with risk retention rules in Europe.

“We are delighted to have again acted as a retention provider in accordance with European risk retention requirements, allowing us to continue to attract repeat as well as new European investors to our CLO platform,” Mark Pelletier, president of American Capital CLO Management, said in the release.

In the secondary market, U.S. CLO AAA notes have eased 7 bps to the Libor plus 160 bps area over the past month, according to a Wells Fargo Securities, LLC research note on Tuesday.

Euro-denominated CLO AAA notes have tightened 3 bps from a month ago to the Euribor plus 125 bps area, the report said.

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