CLO pipeline grows; managers prep for WhiteHorse VII, GT deals; MJX prices $590.25 million

By Cristal Cody

Tupelo, Miss., Aug. 16 - More than $4 billion of new collateralized loan obligation transactions priced in August, better than the slow primary activity predicted for the month, according to market sources on Friday.

MJX Asset Management LLC raised $590.25 million in the Venture XIV CLO Ltd./Venture XIV CLO LLC offering, which included a triple-A rated tranche priced at Libor plus 135 basis points.

Coming up, nearly $15 billion in 31 CLO deals are in the pipeline, a source said on Friday. More than $51 billion of CLOS have priced year to date.

Private equity firm H.I.G. Capital, LLC plans to price $410.82 million in the WhiteHorse VII Ltd./WhiteHorse VII LLC CLO, sources said.

"Hasn't priced" yet, one informed source said on Friday.

Also ahead in primary activity, GoldenTree Asset Management LP is set to bring the $195 million GT Loan Financing I, Ltd./GT Loan Financing I, LLC CLO deal, sources said.

MJX sells $590.25 million

MJX Asset Management sold nine tranches of notes due Aug. 28, 2025 in the deal, according to market sources on Friday.

The Venture XIV CLO priced $4 million of class X notes (Aaa/AAA/) at Libor plus 100 bps; $335 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 135 bps; $20 million of 3.115% class A-2 senior secured fixed-rate notes (Aaa/AAA/); $49 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 185 bps; $2 million of 3.97% class B-2 senior secured fixed-rate notes (Aa2); $55.5 million of class C mezzanine secured deferrable floating-rate notes (A2) at Libor plus 275 bps; $34 million of class D mezzanine secured deferrable floating-rate notes (Baa3) at Libor plus 375 bps; $31.75 million of class E junior secured deferrable floating-rate notes (Ba2) at Libor plus 410 bps and $59 million of subordinated notes.

Morgan Stanley & Co. LLC was the underwriter.

MJX Asset Management will manage the CLO.

The CLO is backed by a revolving pool of U.S. dollar-denominated broadly syndicated corporate first-lien senior secured corporate loans. The collateral pool is expected to be about 70% ramped at closing.

The New York City-based firm last priced a CLO in March when it brought the $600 million Venture XIII CLO Ltd. deal.

WhiteHorse VII CLO in works

The WhiteHorse VII deal is set to price seven tranches of notes due 2025, including $238.8 million of class A-1L floating-rate notes (/AAA/); $52.4 million of class A-2L floating-rate notes (/AA/); $31.2 million of class A-3L deferrable floating-rate notes (/A/); $20 million of class B-1L deferrable floating-rate notes (/BBB/); $20.8 million of class B-2L deferrable floating-rate notes; $8.8 million of class B-3L deferrable floating-rate notes (/B/) and $38.82 million of subordinated notes.

RBS Securities Inc. is the placemen agent.

H.I.G. WhiteHorse Capital LLC, the credit affiliate of H.I.G. Capital, will manage the CLO, which has a non-callable period that ends September 2015 and a reinvestment period that ends September 2017.

The CLO is backed by broadly syndicated senior secured corporate loans.

The transaction is expected to close in September.

GoldenTree preps CLO

GoldenTree Asset Management's offering includes four tranches of notes due August 2024, according to market sources.

The GT Loan Financing I deal will sell $110 million of class A notes (Aaa//AAA); $24 million of class B notes (Aa2); $11 million of class C notes (A2) and $50 million of subordinated notes.

Greensledge Capital Markets, LLC and Natixis North America LLC are co-placement agents.

GoldenTree Asset Management is the CLO manager.

The CLO is backed primarily by first-lien senior secured corporate loans. About 20% of the portfolio is expected to be ramped at the closing date.

The vehicle is expected to initially invest primarily in new issue loans from the primary market.

Proceeds from the offering will be used to purchase a portfolio of about $190 million of primarily senior secured leveraged loans.

The deal is expected to close in September.

New York-based GoldenTree Asset Management, a private investment firm, has about $4 billion in assets under management across six CLOs.

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