Octagon, Voya, Palmer Square, Fortress price CLOs; Owl Rock brings middle-market deal

By Cristal Cody

Tupelo, Miss., Nov. 2 – CLO supply picked up ahead of the U.S. presidential election with several issuers pricing new broadly syndicated and middle-market deals.

Octagon Credit Investors, LLC sold $405.2 million of notes in its latest broadly syndicated CLO offering.

Voya Alternative Asset Management LLC priced $400.7 million of notes in a broadly syndicated CLO.

Palmer Square Capital Management LLC brought $398.85 million of notes it its fourth dollar-denominated CLO transaction of 2020.

Fortress Investment Group LLC tapped the primary market with $397.42 million of notes in the manager’s first broadly syndicated CLO deal of the year.

In addition, Owl Rock Capital Advisors LLC priced $341.5 million of notes in the manager’s third middle-market CLO offering year to date.

In other activity, PPM America, Inc. announced it closed Friday on its previously reported $354.1 million broadly syndicated PPM CLO 4, Ltd. offering in the firm’s first new issue of the year.

PPM Loan Management Co., LLC is the CLO manager.

The new CLO enabled PPM to expand its investor base to include multiple new debt and equity investors, while retaining many repeat investors, according to a news release on Monday.

“We strategically ramped the warehouse portfolio in this volatile market and expect to be fully ramped on a trade date basis on the closing date,” James Damron, senior managing director and head of CLO management at PPM, said in the release.

The CLO had priced $210 million of class A-1 floating-rate notes at Libor plus 142 basis points at the top of the capital stack.

About $70 billion of dollar-denominated broadly syndicated CLOs and more than $6 billion of middle-market CLOs have priced year to date, sources report.

Octagon prices

Octagon Credit Investors priced $405.2 million of notes due Oct. 15, 2033 in the Octagon Investment Partners 50, Ltd./Octagon Investment Partners 50, LLC transaction, according to market sources.

Octagon 50 sold $156 million of class A-1 notes at Libor plus 130 bps at the top of the capital stack.

Morgan Stanley & Co. LLC was the placement agent.

The offering is backed primarily by broadly syndicated first-lien senior secured loans.

Octagon Credit Investors is a New York-based credit investment firm that is majority owned by Conning & Co.

Voya prints CLO

Voya Alternative Asset Management priced $400.7 million of notes due Oct. 20, 2031 in its broadly syndicated CLO offering, according to market sources.

Voya CLO 2020-3, Ltd./Voya CLO 2020-3 LLC sold $221 million of the class A-1 floating-rate notes at Libor plus 130 bps.

Citigroup Global Markets Inc. was the placement agent.

The offering is collateralized mostly by broadly syndicated first-lien senior secured loans.

Voya has priced three new dollar-denominated CLOs, as well as a new European CLO, year to date.

The firm is an affiliate of New York City-based Voya Investment Management LLC.

Palmer Square sells CLO

Palmer Square Capital Management priced $398.85 million of notes due Nov. 25, 2028 in its broadly syndicated CLO transaction, according to market sources.

Palmer Square CLO 2020-4 Ltd./Palmer Square CLO 2020-4, LLC sold $264 million of the class A-1 floating-rate notes at a discount margin of Libor plus 100 bps.

Citigroup was the placement agent.

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

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

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

Fortress taps market

Fortress Investment Group sold $397.42 million of notes due Oct. 20, 2033 in the manager’s new deal, according to market sources.

Fortress Credit BSL IX Ltd./Fortress Credit BSL IX LLC priced $215 million of class A-1A floating-rate notes at Libor plus 153 bps at the top of the capital structure.

MUFG was the placement agent.

FS BSL IX Management LLC will manage the CLO.

The CLO has a two-year non-call period and a five-year reinvestment period.

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

Fortress Investment is a New York City-based investment firm.

Owl Rock prices

In the middle-market space, Owl Rock Capital Advisors priced $341.5 million of notes due Nov. 29, 2029, according to market sources.

Owl Rock CLO V, Ltd./Owl Rock CLO V, LLC sold $182 million of the class A-1 floating-rate notes at Libor plus 185 bps.

Natixis Securities Americas LLC was the placement agent.

The CLO is backed primarily by middle-market senior secured term loans.

Owl Rock Capital has priced three new middle-market CLOs year to date.

The alternative asset manager is based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.