CLO primary light; refinancings ramp up; CSAM refinances $644 million 2014 notes

By Cristal Cody

Eureka Springs, Ark., Jan. 20 – The CLO primary market continues to be mostly quiet with one deal priced year to date, while the refinancing space has seen a dozen deals so far in January, according to market sources on Friday.

Credit Suisse Asset Management, LLC refinanced $644 million of notes from a 2014 CLO offering on Friday.

“While market participants expect a handful more of CLOs to price this month, January has traditionally been a slow time for new issues,” according to a Wells Fargo Securities, LLC analysts’ note on Friday.

In the meantime, CLO spreads have mostly rallied in secondary trading over the month, according to the Wells Fargo Securities note.

“In CLOs, BB spreads led the way, tightening by 100 [basis points] in the first two weeks of January,” the analysts said. “However, this week saw a slight softening.”

Credit Suisse Asset Management refinanced $644 million of notes due July 20, 2026 in the vintage 2014 Madison Park Funding XII Ltd. CLO deal on Friday, according to a market source.

The CLO priced $495 million of class A-R floating-rate notes at Libor plus 126 bps; $87 million of class B-1-R floating-rate notes at Libor plus 165 bps, $10 million of 3.527% class B-2-R fixed-rate notes and $52 million of class C-R deferrable floating-rate notes at Libor plus 235 bps.

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