Highbridge, MJX, NewStar Financial, Oaktree, ICG tap CLO market; December supply thin

By Cristal Cody

Tupelo, Miss., Dec. 23 – CLO managers brought more than $2.5 billion of issuance in the final weeks of December, bringing year-to-date global issuance to about $160 billion, according to market sources and data compiled by Prospect News.

“CLO supply continued to tread deeper into record territory as a last push in the final full week of the year,” J.P. Morgan Securities LLC analysts said in a note. “Even after the bumper week, December supply represents the second quietest month of the year with $8.6 billion in deals printing throughout the month.”

Global issuance volume is about 55% higher than 2013 and 10% higher than in 2006, the second largest year of issuance on record at $135.9 billion, according to the JPMorgan note.

Europe CLO volume remains below less than half the average €32 billion of issuance in 2006 and 2007, the analysts said.

More than $131 billion of U.S. dollar-denominated CLOs priced or were refinanced over the year, according to data compiled by Prospect News.

Europe CLO volume is ending the year with more than €21 billion of issuance, data shows.

CSAM prices upsized CLO

Credit Suisse Asset Management, LLC priced $685.8 million of notes due Jan. 27, 2026 in a CLO transaction upsized from $610 million, according to a market source.

Madison Park Funding XV Ltd./Madison Park Funding XV LLC sold $413.2 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 148 basis points, on the tight side of guidance in the Libor plus 150 bps area.

The CLO also priced $40 million of class D senior secured deferrable floating-rate notes (Ba3) at Libor plus 545 bps at the bottom of the capital structure.

Citigroup Global Markets Inc. was the placement agent.

Credit Suisse Asset Management has priced four CLO deals year to date, including the $1 billion Madison Park Funding XIV Ltd./Madison Park Funding XIV LLC transaction on July 7.

The firm, a unit of Credit Suisse Group AG, brought one CLO deal in 2013.

Highbridge sells CLO

Highbridge Principal Strategies LLC priced $518.5 million of notes due Jan. 21, 2026 in a CLO transaction via Morgan Stanley & Co. LLC, a source said.

Highbridge Loan Management 5-2015 Ltd./Highbridge Loan Management 5-2015 LLC sold $309 million of class A senior secured floaters at Libor plus 149 bps at the top of the capital stack and $8.75 million of class F deferrable floating-rate notes at Libor plus 590 bps at the bottom.

Highbridge has priced two CLO deals over the year, including the $513.5 million Highbridge Loan Management 4-2014 Ltd./Highbridge Loan Management 4-2014 LLC transaction on July 22.

The New York City-based affiliate of Highbridge Capital Management, LLC brought two CLO deals in 2013.

ICG sells $411.3 million deal

ICG Debt Advisors LLC priced $411.3 million of notes due Jan. 25, 2027 in a CLO offering, according to a source.

ICG US CLO 2014-3, Ltd./ICG US CLO 2014-3 LLC priced $164.35 million of class A-1a senior secured floating-rate notes (Aaa//AAA) at Libor plus 150 bps.

The CLO sold $25.6 million of class D senior secured deferrable floating-rate notes (Ba3) at Libor plus 515 bps at the bottom of the stack.

Citigroup Global Markets Inc. was the placement agent.

ICG priced three CLO deals in 2014, including the $417 million ICG US CLO 2014-2, Ltd./ICG US CLO 2014-2 LLC deal on July 18.

The firm is a subsidiary of London-based parent company Intermediate Capital Group plc.

MJX places $461.1 million CLO

MJX Asset Management LLC priced $618.2 million of notes in the Venture XIX CLO, Ltd./Venture XIX CLO LLC transaction, according to a market source.

The CLO sold $280.4 million of class A floating-rate notes at Libor plus 160 bps in the senior tranche.

Lower in the stack, the CLO priced $24.3 million of class E floating-rate notes at Libor plus 530 bps.

BNP Paribas Securities Corp. was the placement agent.

MJX priced four CLO transactions in 2014, including the $618.2 million Venture XVIII CLO, Ltd./Venture XVIII CLO LLC transaction in August.

The New York City-based asset management company brought three CLO deals in 2013.

NewStar prices $407.5 million

NewStar Financial, Inc. priced a $407.5 million middle-market CLO deal via Citigroup Global Markets Inc., a source said.

NewStar Clarendon Fund CLO LLC sold $166.7 million of class A-1 floating-rate notes at Libor plus 185 bps.

Lower in the capital stack, the CLO priced $33.3 million of class E floating-rate notes at Libor plus 605 bps.

NewStar Financial has priced three CLO deals over the year, including the $409.4 million NewStar Arlington Senior Loan Program LLC deal in June.

The middle market commercial lender is based in Boston.

Oaktree raises €375.1 million

In the Europe primary market, Oaktree Capital Management (UK) LLP priced €375.1 million of notes in the Arbour CLO II Ltd. transaction, according to a source.

The CLO placed €204.3 million of class A-2 floating-rate notes at Euribor plus 125 bps.

The €10.6 million mezzanine tranche of class F floating-rate notes priced at Euribor plus 750 bps.

Barclays Bank plc was the placement agent.

Oaktree Capital Management has priced two euro-denominated CLO transactions in 2014, including the €513.53 million Arbour CLO Ltd. deal on May 16, 2014.

The London-based firm is an affiliate of Los Angeles-based Oaktree Capital Management, LP.

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