CLO primary active; Acis Capital prices $510.5 million CLO; Columbia Management prices

By Rebecca Melvin

New York, Sept. 18 – The CLO primary market continued to see pricings of new deals on Thursday as gradual firming over the last week and half remained in force amid strength in the broader credit and equity markets.

Acis Capital Management LP raised $510.5 million and Columbia Management Investment Advisors LLC priced $513.65 million of notes in collateralized loan obligation offerings, according to informed sources.

The CLO market, as an alternative asset market, tends to lag the broader markets but is connected to fixed-rate markets.

The U.S. 10-year Treasury note edged up just slightly by 1/32 on Thursday to 97 29/32 to yield 2.618%, and the Dow industrials and S&P 500 rallied to all-time highs. The markets were boosted by the Federal Reserve’s latest policy statement on Wednesday that pointed to the central bank remaining on course to an eventual rate raise.

Acis Capital Management’s ACIS CLO 2014-5 Ltd./ACIS CLO 2014-5 LLC priced eight tranches, including $310.75 million of class A floating-rate notes (/AAA/) at Libor plus 154 bps. The deal included an equity tranche of $52.75 million of subordinated notes.

Nomura Securities International Inc. arranged the transaction.

Acis Capital Management LP will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated senior secured corporate loans.

The CLO is non-callable until Nov. 1, 2016. The reinvestment period ends Nov. 1, 2019.

The notes are due Nov. 1, 2026.

Acis Capital Management was in the primary market on May 16 with the ACIS CLO 2014-4 for $504.75 million and on Jan. 16, with the Acis CLO 2014-3 Ltd./Acis CLO 2014-3 LLC deal for $416.75 million.

Columbia Management Investment Advisors’ $513.65 million Cent CLO 22 Ltd./Cent CLO 22 Corp. sold $319.8 million of class A-1 floating-rate notes at Libor plus 148 bps (/AAA/), $34 million of class A-2A floating-rate notes at Libor plus 230 bps (/AA/); $25 million of 4.56% class A-2B fixed-rate notes (/AA/); and $34.4 million of class B deferrable floating-rate notes at Libor plus 320 bps (/A/).

The Cent CLO also included $25.4 million of class C deferrable floating-rate notes at Libor plus 375 bps, $21.3 million of class D deferrable floating-rate notes at Libor plus 530 bps, $11.3 million of class E deferrable floating-rate notes at Libor plus 640 bps and $42.45 million of subordinated notes.

J.P. Morgan Securities LLC was the placement agent.

Columbia Management Investment Advisors will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated senior secured corporate loans.

The Boston-based investment management firm priced four CLO deals in 2013.

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