Symphony Asset Management prices $838 million CLO; volume falls; Hildene in pipeline

By Cristal Cody

Tupelo, Miss., May 6 - Symphony Asset Management LLC sold an $838 million collateralized loan obligation deal and placed the AAA-rated tranche of notes at Libor plus 137 basis points, according to a market source on Tuesday.

The week is expected to see a handful of deals, but the pipeline has dropped to about $12 billion of CLO transactions, a source said.

"There's not a ton of volume right now, but there's not any particular thing standing in the way," one source said.

CLO manager Hildene Leveraged Credit, LLC plans to be in the primary market with a $413.75 million CLO deal, according to a source.

Symphony prices $838 million

Symphony Asset Management sold $838 million of notes due July 15, 2026 in the CLO deal, according to a market source.

The Symphony CLO XIV, Ltd./Symphony CLO XIV LLC vehicle priced $5 million of class X floating-rate notes (//AAA) at Libor plus 100 bps; $250 million of class A-1 floating-rate notes (//AAA) at Libor plus 137 bps; $236 million of class A-2 floating-rate notes (//AAA) at Libor plus 148 bps and $10 million of 3.5% class A-3 fixed-rate notes (//AAA) at the top of the capital structure.

The CLO also sold $73 million of class B-1 floating-rate notes at Libor plus 200 bps; $35 million of 4.4% class B-2 fixed-rate notes; $25 million of class C-1 floating-rate notes at Libor plus 295 bps; $15 million of 5.5% class C-2 fixed-rate notes; $26 million of class D-1 floating-rate notes at Libor plus 340 bps; $26 million of class D-2 floating-rate notes at Libor plus 360 bps; $48 million of class E floating-rate notes at Libor plus 460 bps and $16 million of class F floating-rate notes at Libor plus 500 bps.

The deal included $73 million of subordinated notes in the equity tranche.

Morgan Stanley & Co. LLC was the placement agent.

Symphony Asset Management will manage the CLO, which is backed primarily by first-lien senior secured corporate loans.

Proceeds from the deal will be used to purchase a portfolio of about $800 million of primarily senior secured leveraged loans.

Symphony Asset Management, a San Francisco-based asset management firm, brought two CLO deals in 2013.

Hildene eyes $413.75 million

Hildene Leveraged Credit plans to price $413.75 million of notes due 2026 in a CLO offering, according to a market source.

The Hildene CLO II, Ltd./Hildene CLO II LLC transaction includes $252 million of class A floating-rate notes (//AAA); $39.25 million of class B-1 floating-rate notes; $10 million of class B-2 fixed-rate notes; $22 million of class C floating-rate notes; $24.25 million of class D floating-rate notes; $19.75 million of class E floating-rate notes; $6.5 million of class F floating-rate notes and $40 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

Hildene Leveraged Credit, LLC will manage the CLO, which is backed primarily by broadly syndicated senior secured first-lien corporate loans.

Proceeds from the deal will be used to purchase a portfolio of about $400 million of leveraged loans.

Hildene Leveraged Credit is part of Hildene Capital Management, LLC, an asset management firm based in Stamford, Conn.

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