Light U.S. issuance forecast; European CLO pipeline resumes; Ares, Cadogan deals expected

By Cristal Cody

Tupelo, Miss., July 8 - Several European collateralized loan obligation transactions are expected in July and August, following a couple of weeks of light U.S. deal action, sources said on Monday.

Credit Suisse Asset Management, LLC likely will be in the market in mid-July with the €309.26 million Cadogan Square CLO V BV deal, while Ares Management LLC is expected to price the €300 million Ares European CLO VI Ltd. transaction later in the week or the upcoming week, according to informed sources.

GSO Capital Partners LP is expected to bring a €410 million Herbert Park CLO offering in late July or August, sources said.

Also on the calendar, 3i Debt Management, a unit of London-based 3i Group plc, is expected to price a €300 million European CLO via Resource America Inc.

Pramerica Investment Management Ltd.'s second European CLO offering of the year likely will price in August, a source said.

Investec Securities Ltd. is the placement agent.

Pramerica is the London-based leveraged finance arm of Newark, N.J.-based Prudential Financial, Inc., which closed the €300 million Dryden XXVII Euro CLO 2013 BV in May.

New U.S. issuance is expected as the markets stabilize following heavy Treasuries selling on Friday from speculation the Federal Reserve will taper its $85 billion monthly asset purchases in September, a source said.

"There were no pricings last week in the CLO market in the U.S.," the source said. "Secondary volume is picking up a little bit, whereas last week there was nothing in the CLO market and the week before was pretty muted as well."

U.S. CLO market activity was mostly slow on Monday, along with little activity seen on Friday, sources reported.

Deals totaled more than $7 billion for June, while U.S. CLO issuance in July likely will slow to $4 billion to $5 billion, a source said.

More than $18 billion in new CLO deals are reportedly in the pipeline.

Cadogan Square CLO V on tap

Credit Suisse Asset Management will price the €309.26 million Cadogan Square CLO V via BofA Merrill Lynch, according to an informed source.

CLO manager Credit Suisse Asset Management is a subsidiary of Zurich-based Credit Suisse AG.

CSAM last sold a European CLO, the €507 million Cadogan Square CLO IV BV, in 2007.

Blackstone/GSO to sell CLO

Deutsche Bank Inc. will arrange the €410 million Herbert Park CLO for GSO Capital Partners, according to informed sources.

Blackstone/GSO Debt Funds Management Europe Ltd., a unit of Blackstone Group LP, will manage the CLO.

Blackstone/GSO sold the €403.35 million Grand Harbour I BV European CLO in May.

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