CLO primary market remains quiet; MidOcean Credit Partners plans second CLO deal

By Cristal Cody

Tupelo, Miss., Jan. 8 - Market activity remained quiet on Wednesday in the collateralized loan obligation space with issuance expected to resume in the week ahead, according to informed sources.

About $12 billion of broadly syndicated CLO deals are in the pipeline, sources said.

MidOcean Credit Partners, which sold its first CLO in January 2013, plans to price a second CLO transaction, according to a market source.

The firm is set to offer $414.75 million of notes due Jan. 29, 2025 in the MidOcean Credit CLO II/MidOcean Credit CLO II LLC vehicle.

The deal includes $250 million of class A floating-rate notes (/AAA/); $56 million of class B floating-rate notes (/AA/); $25 million of class C deferrable floating-rate notes (/A/); $21 million of class D deferrable floating-rate notes (/BBB/); $20 million of class E deferrable floating-rate notes (/BB/) and $42.75 million of income notes.

Jefferies LLC will arrange the transaction.

MidOcean Credit Fund Management LP will manage the CLO, which is backed by a revolving pool of primarily broadly syndicated senior secured loans.

The offering is expected to close on Jan. 29.

In January 2013, MidOcean Credit Partners priced the $425.27 million MidOcean Credit CLO I/MidOcean Credit CLO I LLC deal.

MidOcean Credit Partners is an affiliate of New York City-based private equity firm MidOcean Partners.

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