CLO market on track for more $1 billion-plus deals; CLO pipeline steady

By Cristal Cody

Tupelo, Miss., July 3 – The collateralized loan obligation market is set to see a third $1 billion-plus deal with potentially more in the works, an amount that “a few years ago was unheard of,” an informed source said.

Credit Suisse Asset Management, LLC plans to price $1,036,000,000 of notes in the Madison Park Funding XIV Ltd./Madison Park Funding XIV LLC deal via Morgan Stanley & Co., according to a market source.

Apollo Credit Management (CLO) LLC priced the $1,542,100,000 ALM XIV, Ltd. CLO transaction on June 6.

Onex Credit Partners LLC brought the $1,001,750,000 OCP CLO 2014-6 Ltd./OCP CLO 2014-6 Corp. offering on May 22.

In new primary activity, Boston-based Eaton Vance Management priced the Eaton Vance CLO 2014-1, Ltd./Eaton Vance CLO 2014-1 LLC deal, according to a market source.

Wells Fargo Securities LLC was the placement agent.

Final pricing details were not available by press time.

About $10 billion of CLO transactions are in the pipeline, according to a market source.

In today’s CLO market, “investors grapple with an increasing number of CLO managers and growing volumes of CLO transactions,” Morgan Stanley & Co. LLC analysts Vishwanath Tirupattur and Mia Qian said in a note.

About $100 billion of CLO issuance is forecast for the year.

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