Sankaty prices $516.5 million CLO; Monroe Capital brings CLO; LCM refinances; spreads flat

By Cristal Cody

Tupelo, Miss., May 12 – New primary and refinancing activity continued in the CLO market, according to sources on Tuesday.

Sankaty Advisors LLC brought a $516.5 million CLO offering.

Monroe Capital Management, LLC priced a $412 million middle market-backed deal.

LCM Asset Management LLC, in the primary market earlier in the year, refinanced $443.24 million of notes in a vintage 2012 deal.

In the secondary market, spreads have been mostly unchanged with AAA-rated notes seen about 5 basis points wider, a source said.

Sankaty prices Avery Point VI

Sankaty Advisors sold $516.5 million of notes due Aug. 5, 2027 in the Avery Point CLO VI, Ltd./Avery Point CLO VI, Corp. offering, according to a market source.

The CLO priced $302.5 million of AAA-rated floating-rate notes at Libor plus 145 bps in the senior tranche.

Morgan Stanley & Co. LLC was the placement agent.

Sankaty Advisors is the CLO manager.

The CLO has a three-year non-call period and a five-year reinvestment period.

The CLO is backed mainly by broadly syndicated first-lien senior secured corporate loans.

Proceeds from the offering will be used to purchase a portfolio of about $500 million of leveraged loans.

Boston-based Sankaty Advisors priced two CLO deals in 2014.

Monroe Capital sells CLO

Monroe Capital Management priced $412 million of notes in the Monroe Capital CLO 2015-1 Ltd. offering, a market source said.

The CLO sold $252 million of class A floating-rate notes at Libor plus 143 bps at the top of the capital structure.

BNP Paribas Securities Corp. arranged the deal.

Monroe Capital Management will manage the CLO.

The Chicago-based middle market commercial lending firm, an affiliate of Monroe Capital LLC, brought one CLO deal in 2014.

LCM refinances CLO

LCM Asset Management refinanced $443.24 million of notes due Oct. 19, 2022 in the vintage 2012 LCM XII LP/LCM XII LLC CLO deal, according to a market source.

The CLO sold the $321.25 million senior tranche of class A-R floating-rate notes at Libor plus 126 bps.

BNP Paribas Securities was the refinancing agent.

LCM Asset Management is the CLO manager.

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

LCM previously priced the $609.63 million LCM XVIII LP/LCM XVIII LLC CLO deal on Feb. 19.

The New York City-based asset management firm brought three CLO deals in 2014.

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