CVP prices $408.75 million CLO; AAAs forecast to tighten; Och-Ziff preps $512 million deal

By Cristal Cody

Tupelo, Miss., Jan. 26 – CLO issuance rose to $918 million from two deals priced year to date as January primary action continues to remain thin, according to market sources on Monday.

Credit Value Partners LP sold $408.75 million of notes in the CVP Cascade CLO-3 Ltd./CVP Cascade CLO-3 LLC offering, a source said. Jefferies LLC was the placement agent. CVP CLO Manager, LLC, part of Credit Value Partners, will manage the CLO. Final pricing details were not available by press time.

Greenwich, Conn.-based Credit Value Partners priced one deal in 2014.

New York City-based CVC Credit Partners, LLC brought the $509.25 million Apidos CLO XX/Apidos CLO XX LLC transaction via Credit Suisse Securities (USA) LLC on Jan. 15. The CLO priced the AAA notes at Libor plus 155 basis points.

“January has gotten off to a slow start for the second consecutive year with the supply total on the month trending toward the lowest month of issuance since January 2012,” J.P. Morgan Securities LLC analysts Rishad Ahluwalia and Jacob Kurosaki said in a note. “The CLO market continues to suffer from macro volatility.”

JPMorgan forecasts new issue CLO AAA notes to tighten by the end of June.

Coming up in the deal pipeline, details emerged on a $512 million offering that Och-Ziff Loan Management LP has in the works, according to a market source.

BofA Merrill Lynch is the placement agent.

Och-Ziff will manage the CLO.

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