Anchorage prices $404.69 million CLO; Investcorp refinances $368 million; spreads widen

By Cristal Cody

Tupelo, Miss., Aug. 2 – Anchorage Capital Group, LLC priced $404.69 million of notes in a new CLO offering.

Meanwhile, Investcorp Credit Management US LLC sold $368 million of notes in a refinancing of a vintage 2016 CLO deal.

“July U.S. primary supply was roughly in line with June’s volume, but secondary supply fell sharply in July,” Wells Fargo Securities LLC analysts said in a note on Friday. “In July, investors saw $2.3 billion on Bids Wanted in Competition, the lowest amount of the year.”

July BWIC activity was below the 2019 average monthly BWIC volume of $3.3 billion and below the $4.4 billion of BWICs in June, according to the note.

CLO spreads widened in July in the secondary market with A-rated tranches 30 basis points weaker at Libor plus 270 bps on average. BBB spreads widened by 20 bps to the Libor plus 375 bps area, while BB spreads moved 35 bps wider to the 700 bps area, the Wells Fargo analysts said.

Over the week, AAAs eased an average 2 bps in secondary trading to Libor plus 124 bps, according to the report.

AAs were flat on the week at Libor plus 180 bps, while CLO A-rated notes were 5 bps wider at an average Libor plus 245 bps in secondary trading.

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