LCM, Columbia Management, Allstate Investment Management bring deals; CLO pipeline active

By Cristal Cody

Tupelo, Miss., May 19 - More than $10 billion of CLO transactions are in the near-term pipeline with some issuance expected for the short market week, according to informed sources on Monday.

The bond markets will close early on Friday and close on May 26 for the Memorial Day holiday.

Details emerged on new issuance from LCM Asset Management LLC, Columbia Management Investment Advisors, LLC and Allstate Investment Management Ltd.

LCM Asset Management upsized its CLO deal to $725.6 million from $621.21 million, according to an informed source.

LCM priced the class A notes at Libor plus 150 basis points.

Columbia Management Investment Advisors sold $621.05 million of notes in the firm's CLO offering and brought the AAA-rated tranche at Libor plus 149 bps, according to an informed source.

Allstate Investment Management priced $579 million of notes in a CLO deal and placed the AAA-rated tranche at Libor plus 154 bps, according to an informed source.

In the European primary market, Oaktree Capital Management (UK) LLP priced €375 million of notes due 2027 in the Arbour CLO Ltd. deal via Barclays Bank plc, according to a market source. Final pricing terms were not available by press-time.

LCM upsizes

LCM Asset Management sold an upsized $725.6 million of notes due 2026 in the LCM XVI LP/LCM XVI LLC CLO transaction, according to an informed source.

The CLO priced $4.5 million of class X floating-rate notes at Libor plus 100 bps; $441 million of class A floating-rate notes at Libor plus 150 bps; $84.7 million of class B floating-rate notes at Libor plus 200 bps; $56 million of class C floating-rate notes at Libor plus 285 bps; $34.3 million of class D floating-rate notes at Libor plus 360 bps; $33.6 million of class E floating-rate notes at Libor plus 460 bps and $71.5 million of limited partnership certificates in the equity tranche.

Deutsche Bank Securities Inc. was the placement agent.

LCM Asset Management will manage the CLO, which is backed primarily by first-lien senior secured corporate loans.

Proceeds will be used to purchase a portfolio of about $600 million of primarily senior secured leveraged loans.

LCM Asset Management refinanced $370.5 million of notes in the LCM X LP/LCM X LLC CLO in April and priced the $624 million LCM XV LP/LCM XV LLC transaction in January.

The New York City-based asset management firm brought two CLO deals in 2013.

Columbia Management prices

Columbia Management Investment Advisors priced the $621.05 million Cent CLO 21 Ltd./Cent CLO 21 Corp. deal via Citigroup Global Markets Inc., according to an informed source.

Cent CLO 21 sold $137 million of class A-1A floating-rate notes at Libor plus 149 bps; $250 million of 1.39% class A-1B fixed-rate notes; $62 million of class A-2A floating-rate notes at Libor plus 200 bps and $10 million of 4.01% class A-2B fixed-rate notes.

The CLO also priced $39 million of class B floating-rate notes at Libor plus 280 bps; $33 million of class C floating-rate notes at Libor plus 350 bps; $24 million of class D floating-rate notes at Libor plus 500 bps; $12 million of class E floating-rate notes at Libor plus 575 bps and $54.05 million of subordinated notes.

Columbia Management Investment Advisors will manage the CLO.

The Boston-based investment management firm priced four CLO deals in 2013.

Allstate raises $579 million

Allstate Investment Management priced $579 million of notes in the Aimco CLO series 2014-A transaction, according to an informed source.

The CLO priced $343.75 million of class A floating-rate notes at Libor plus 154 bps; $66.3 million of class B-1 floating-rate notes at Libor plus 200 bps; $3 million of 4.58% class B-2 fixed-rate notes; $30 million of class C-1 floating-rate notes at Libor plus 285 bps; $12.35 million of 5.53% class C-2 fixed-rate notes; $28.05 million of class D floating-rate notes at Libor plus 355 bps; $24.2 million of class E floating-rate notes at Libor plus 460 bps and $11.55 million of class F floating-rate notes at Libor plus 525 bps.

The transaction included $50.8 million of subordinated notes in the equity tranche.

Goldman Sachs & Co. arranged the deal.

The CLO manager is Allstate Investment Management.

Allstate Investment Management is a subsidiary of Northbrook, Ill.-based Allstate Corp.

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