JMP prices $456.87 million CLO; MJX, Palmer Square refinance; spreads near post-crisis tights

By Cristal Cody

Tupelo, Miss., June 30 – JMP Credit Advisors LLC announced on Friday it wrapped a $456.87 million new CLO offering.

“JMP Credit Advisors CLO IV is our third transaction since the end of the credit crisis,” Bryan Hamm, president of JMP Credit Advisors, said in a release.

In refinancing action, MJX Asset Management LLC repriced $570.5 million of notes from a 2014 CLO.

Palmer Square Capital Management LLC priced $557.6 million of notes in a refinancing and reset of a 2015 deal.

“Today, issuers have printed over $10 billion per month in the past three months – on top of $110 billion of year-to-date reset and refi activity,” Wells Fargo Securities, LLC analysts said in a note released on Friday. “Currently, CLO primary spreads are at, or near, post-crisis tights.”

CLO AAAs are pricing in the Libor plus 123 basis points area, compared to the Libor plus 115 bps area in May 2013, according to the note.

In the secondary market, 2.0 CLO AAA notes are trading in the Libor plus 113 bps area, the analysts said.

“CLO AAA spreads have remained fairly flat over the past several weeks, while secondary spreads lower in the stack have edged tighter in the past few months,” the analysts said. “While AAA spreads are at their 52-week tights, the rest of the capital stack is 10-20 bps wide of the 52-week tights.”

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