Arrowpoint joins pipeline; new issue CLO AAAs tighten in June; mezzanine notes improve

By Cristal Cody

Tupelo, Miss., June 18 – About $13 billion of CLO transactions are in the pipeline following more than $8 billion of issuance so far in June, according to market sources on Wednesday.

Arrowpoint Asset Management LLC plans to bring a $150 million CLO deal, a source said.

New CLO AAA notes mostly have priced tighter in June from the Libor plus 150 basis points area, according to market sources.

New York Life Insurance Co. priced the AAA-rated tranche of the Flatiron CLO 2014-1 Ltd./Flatiron CLO 2014-1 LLC transaction on June 5 at Libor plus 140 bps.

Och-Ziff Loan Management, LP’s OZLM VII, Ltd./OZLM VII, LLC deal that priced on Friday placed the AAA notes at Libor plus 142 bps.

CLO A-rated notes have priced about 18 bps tighter this year, a market source said. BB-rated notes have priced on average about 20 bps tighter year to date, according to the source.

Arrowpoint Asset Management plans to price $150 million of notes due 2026 in the Peaks CLO 1 Ltd./Peaks CLO 1 LLC transaction, according to a market source.

Guggenheim Securities LLC is the placement agent.

Arrowpoint Asset Management will manage the CLO.

The CLO has a two-year non-call period and a four-year reinvestment period.

The vehicle is backed primarily by a revolving pool of broadly syndicated senior secured loans.

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