Brigade Capital prices $461.1 million; Palmer Square on ‘cusp of prepping’ second CLO deal

By Cristal Cody

Tupelo, Miss., Sept. 11 – Issuance in the collateralized loan obligation market slowed at the start of the month but primary activity is on the rise, according to sources on Thursday.

In new issuance, Brigade Capital Management, LLC priced $461.1 million of notes in the Battalion CLO VI Ltd./Battalion CLO VI LLC deal, according to a market source.

The CLO sold $290.8 million of class A-1 floating-rate notes at Libor plus 145 basis points.

Citigroup Global Markets Inc. arranged the offering.

The deal is New York City-based Brigade Capital’s second CLO transaction in 2014.

More than $86 billion of CLOs already have priced year to date, more than the $82.61 billion brought in 2013, sources said. Market analysts forecast up to $120 billion of total issuance for 2014.

Looking ahead, Palmer Square Capital Management LLC plans to bring a second CLO transaction before the year is out.

“Our goal is to be a serial issuer of CLOs,” Christopher D. Long, president of Palmer Square Capital Management, said in an interview on Thursday. “We had a very successful execution of our first deal that closed in June, so we’re on the cusp of prepping for some additional issuance.”

The firm brought the $457 million Palmer Square CLO 2014-1, Ltd. offering in April. Palmer Square Capital Management priced two CLO transactions in 2013.

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