ING Alternative Asset Management brings $518.2 million CLO; new issue AAA spreads widen

By Cristal Cody

Tupelo, Miss., Nov. 27 - ING Alternative Asset Management LLC priced $518.2 million of notes in a collateralized loan obligation, according to an informed source on Wednesday.

ING sold the AAA tranche at Libor plus 145 basis points, wider than where the firm priced two CLOs earlier in the year.

ING Alternative Asset Management was last in the market in April when it sold the $470.25 million ING IM CLO 2013-2 Ltd./ ING IM CLO 2013-2 LLC transaction, which included $297 million of class A-1 floating-rate notes (Aaa/AAA/) priced at Libor plus 115 bps.

In March, the firm priced the $618.35 million ING IM CLO 2013-1 Ltd./ ING IM CLO 2013-1 LLC deal that included $393 million of class A-1 secured floating-rate notes (Aaa/AAA/) brought at Libor plus 114 bps.

New issue AAA spreads have widened considerably over the year because of a lack of liquidity and fewer investors, sources report.

AAA-rated CLO spreads remain "sticky" in the 140 bps to 148 bps area, a source said.

CLO issuance year-to-date has climbed to more than $70 billion, according to a market source.

December primary activity is expected to stay active with about $13 billion of CLO transactions in the pipeline, a market source said.

Alcentra NY LLC intends to price the $413.85 million Shackleton 2013-1 CLO LLC transaction in the U.S. market, while NIBC Bank NV is set to offer the €300 million North Westerly CLO IV in the European CLO market.

ING prices $518.2 million CLO

ING Alternative Asset Management priced $518.2 million of notes due 2026 in the CLO deal, a source said.

ING IM CLO 2013-3, Ltd. sold $320 million of class A-1 senior secured floating-rate notes at Libor plus 145 bps, $45.6 million of class A-2 senior secured floating-rate notes at Libor plus 180 bps, $47.2 million of class B floating-rate notes at Libor plus 270 bps, $25.6 million of class C floating-rate notes at Libor plus 325 bps, $22.8 million of class D floating-rate notes at Libor plus 450 bps, $14 million of class E floating-rate notes at Libor plus 500 bps and $43 million of subordinated notes.

Credit Suisse Securities (USA) LLC was the placement agent.

ING Alternative Asset Management is the CLO manager.

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

New York-based ING Alternative Asset Management is an affiliate of ING Investment Management Co. LLC.

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