Primary steady; Hercules, Canyon Capital Advisors price CLOs; American Capital preps deal

By Cristal Cody

Tupelo, Miss., Nov. 5 – CLO primary activity is expected to remain steady through the end of the year with deals already priced since the start of the month, according to market sources on Wednesday.

Hercules Technology Growth Capital, Inc. announced on Wednesday that it sold $129.3 million of 3.524% asset-backed notes due April 16, 2021 in the Hercules Capital Funding Trust 2014-1, LLC transaction.

Guggenheim Securities, LLC was the underwriter.

Hercules Technology Growth Capital is a Palo Alto, Calif.-based specialty finance company that provides senior secured loans to venture capital-backed companies in technology-related markets.

In other new issuance, details emerged on Canyon Capital Advisors LLC’s $409.08 million offering of notes due Jan. 20, 2027.

Canyon Capital CLO 2014-2, Ltd./Canyon Capital CLO 2014-2, LLC priced $251.2 million of class A floating-rate notes (Aaa expected/AAA/) at Libor plus 157 basis points at the top of the capital structure, a market source said.

At the bottom of the capital stack, Canyon Capital CLO 2014-2 priced $17.6 million of class E deferrable floating-rate notes (/BB/) at Libor plus 500 bps.

Goldman Sachs & Co. was the placement agent.

The alternative asset manager is based in Los Angeles.

Coming up in the deal pipeline, American Capital CLO Management, LLC plans to sell $410.79 million of notes due 2027 in the ACAS CLO 2014-2, Ltd./ACAS CLO 2014-2 LLC transaction, according to a market source.

Wells Fargo Securities LLC is the placement agent.

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