CLO summer deal pipeline steady; Silvermine readies to bring firm’s second CLO of year

By Cristal Cody

Tupelo, Miss., July 28 – July is expected to close out with additional issuance in the collateralized loan obligation market, according to informed sources on Monday.

More than $81 billion of CLOs have priced in the U.S. and European markets year to date, according to data compiled by Prospect News.

Ares Management LLC’s $1.26 billion Ares XXXI CLO Ltd./Ares XXXI CLO LLC transaction remains in the pipeline, a source said.

J.P. Morgan Securities LLC is the placement agent.

Silvermine Capital Management LLC plans to bring the firm’s second CLO deal of the year, a $413 million offering of notes due Oct. 15, 2026, according to a market source.

The Silver Spring CLO Ltd./Silver Spring CLO LLC transaction will price via Barclays.

Silvermine Capital Management was last in the market in April with the $518.1 million Silvermore CLO Ltd./Silvermore CLO LLC transaction.

The Stamford, Conn.-based employee-owned asset management firm brought one deal in 2013.

Looking ahead, about 17 broadly syndicated loan and middle-market CLO deals totaling $7.9 billion are in the near-term pipeline, according to a market source.

Moody’s Investors Service said in a report that it is “currently analyzing another 42 proposed U.S. CLOs that we expect will close in the third quarter, one of which is backed primarily by a portfolio of small and medium-sized enterprise loans. The rest are BSL deals.”

Moody’s also is analyzing another seven proposed European CLO deals that are expected to close in the third quarter, according to the report.

“We expect relatively strong Q3 issuance in Europe as well, with deals from repeat CLO 2.0 issuers, established CLO 1.0 managers yet to enter the 2.0 market and new collateral managers entering the European CLO market for the first time,” Moody’s said.

Intermediate Capital Group plc plans to price its second European CLO deal of the year in the next few weeks, according to the company and a market source.

The London-based investment firm intends to offer €361 million of notes in the St. Paul’s CLO V Ltd. deal via placement agent J.P. Morgan Securities plc.

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