Crescent Capital prices $458.6 million CLO; new issue AAAs, mezzanine spreads flat in May

By Cristal Cody

Tupelo, Miss., May 15 - Crescent Capital Group LP priced a $458.6 million collateralized loan obligation deal, according to a market source on Thursday.

The CLO placed the AAA-rated tranche at Libor plus 155 basis points.

LCM Asset Management LLC priced its previously announced $621.21 million LCM XVI LP/LCM XVI LLC CLO transaction via Deutsche Bank Securities Inc., according to a market source.

Final pricing terms were not available by press-time.

New issue CLO AAA-rated notes remain stuck in the Libor plus 148 bps to Libor plus 158 bps range, while mezzanine note spreads widened in April but are unchanged in May, according to J.P. Morgan Securities LLC CLO analysts.

"New-issue mezzanine spreads reflected the broader weakness in HY loan spreads throughout April, with BBB, BB, and single-Bs widening 10 bps, 17.5 bps, and 20 bps since the beginning of April," the analysts said in a note.

Secondary spreads also are flat on the huge amount of supply brought over the past month, sources said.

More than $5 billion of deals have priced in May following the record $13.42 billion of issuance in April, according to market sources.

Crescent Capital prices CLO

Crescent Capital Group priced $458.6 million of floating-rate and subordinated notes due 2026 in the CLO deal, according to a market source.

The Atlas Senior Loan Fund V Ltd./Atlas Senior Loan Fund V LLC vehicle priced $279.5 million of class A floating-rate notes (/AAA/) at Libor plus 155 bps; $47.2 million of class B floating-rate notes (/AA/) at Libor plus 220 bps; $38.3 million of class C deferrable floating-rate notes (/A/) at Libor plus 320 bps; $24.5 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 345 bps; $24.1 million of class E deferrable floating-rate notes (/BB-/) at Libor plus 470 bps and $45 million of subordinated notes.

Barclays arranged the transaction.

Crescent Capital Group will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated senior secured corporate loans.

The CLO has a two-year non-call period and a four-year reinvestment period.

Crescent Capital Group, a Los Angeles-based alternative asset management firm, brought two CLO transactions in 2013.

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