Garrison prices $352.8 million in first 2019 CLO; Palmer Square brings $500.25 million

Chicago, Aug. 28 – Garrison Investment Group, LP and Palmer Square Capital Management LLC brought the annual 2019 total for CLO issuance up another $850 million.

Garrison closed on its first CLO of the year, a $352.8 million offering that had Natixis Securities Americas LLC serving as placement agent.

Palmer Square Capital priced $500.25 million in six classes of notes plus a subordinated note class.

On Tuesday, volume was lighter than Monday for investment-grade trading for CBO/CDO/CLOs and heavier for non-investment grade.

In the higher-grade market, $104.78 million was bought or sold, and $44.79 million traded in non-investment grade.

The average price was 98.3 for investment-grade and 79.7 for non-investment grade.

With their new $352.8 million middle-market CLO, Garrison is now managing over $1.1 billion in rated CLO assets.

According to the transaction documents, this new offering will need to be collateralized by at least 85% in senior secured loans and 95% of the loan issuers are required to be based in the United States.

A maximum of 20% of the loans in the collateral pool can be covenant-lite.

According to S&P Global Ratings, the top five industry distributions for the portfolio are: software, auto components, health care equipment and supplies, commercial services and supplies, and road and rail.

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