Global CLO issuance tops $51 billion; Cutwater prices $462.1 million CLO deal

By Cristal Cody

Tupelo, Miss., May 13 – U.S. CLO issuance remains strong and rose to more than $46 billion year to date following new deals in May, according to market sources and Prospect News data.

Nearly €5 billion of euro-denominated CLOs have priced in 2015, data shows.

More than $51 billion of total global CLO notes have priced in 98 deals year to date, according to data.

That puts the 2015 pace a little ahead of 2014 activity. In the comparable period of 2014 through May 13 $47.21 billion of CLOs priced.

In new issuance Wednesday, Cutwater Investor Services Corp. priced a $462.1 million CLO offering.

Cutwater prices $462.1 million

Cutwater Investor Services sold $462.1 million of notes due July 15, 2027 in a CLO deal via RBC Capital Markets, LLC, according to a market source.

Cutwater 2015-I, Ltd./Cutwater 2015-I, LLC priced $200 million of class A-1 senior secured floating-rate notes at Libor plus 161 basis points in the senior tranche.

The CLO priced $9 million of class F secured deferrable floating-rate notes at Libor plus 710 bps at the bottom of the capital structure.

Cutwater Investor Services will manage the CLO.

The CLO has a 1.5-year non-call period and four-year reinvestment period.

The offering is collateralized primarily by broadly syndicated first lien senior secured loans, eligible investments and cash.

Cutwater, a New York City-based investment management firm, brought two CLO deals in 2014.

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