CSAM sells AAA-rated CLO slices at Libor plus 128 bps-145 bps spreads; primary to stay active

By Cristal Cody

Tupelo, Miss., Aug. 19 - Credit Suisse Asset Management, LLC raised $521.5 million in its third CLO offering of the year, informed sources said on Monday.

The New York-based subsidiary of Credit Suisse Group AG was in the market with the Madison Park Funding XI, Ltd./Madison Park Funding XI, LLC CLO, which priced the triple A-rated tranches at spreads ranging from Libor plus 128 basis points to Libor plus 145 bps.

Credit Suisse Asset Management will manage the CLO through its credit investments group. The firm manages 21 U.S. CLOs and five European CLOs.

Credit Suisse Asset Management sold its first post-financial crisis European CLO in July when it priced €304.75 million in the Cadogan Square CLO V BV offering.

Additional primary issuance is expected over the week as CLO managers work to price deals in front of the Labor Day holiday, market sources report.

Credit Suisse Asset prices

Credit Suisse Asset Management sold 10 tranches of notes due Oct. 23, 2025 in the Madison Park Funding XI deal, according to market sources on Monday.

The CLO priced $190.5 million of class A-1A senior secured floating-rate notes (Aaa) at Libor plus 128 bps; $17 million of class A-1B senior secured floating-rate notes (Aaa) at Libor plus 145 bps; $103 million of class A-2 senior secured floating-rate notes (Aaa//AAA) at Libor plus 130 bps: $50 million of class B-1 floating-rate notes (Aa2) at Libor plus 175 bps; $25 million of 4.05% class B-2 fixed-rate notes (Aa2); $23 million of class C deferrable floating-rate notes (A2) at Libor plus 275 bps; $30 million of class D deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $22 million of class E deferrable floating-rate notes (Ba3) at Libor plus 450 bps; $14 million of class F deferrable floating-rate notes (B2) at Libor plus 515 bps; and $47 million of subordinated notes.

BofA Merrill Lynch was the underwriter.

Credit Suisse Asset Management is the CLO manager.

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

The deal is expected to close on Sept. 19.

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