Octagon prices $705.5 million CLO; heavy supply forecast; Ares, Symphony, CSAM on tap

By Cristal Cody

Eureka Springs, Ark., Sept. 8 – Octagon Credit Investors, LLC priced a $705.5 million CLO deal on Thursday in the first supply of the week.

Octagon sold eight tranches of notes in the offering.

CLO primary action is expected to be strong in September.

“August was the second biggest month of the year of total issuance volume,” one source said on Thursday. “I would expect the most volume of the entire year this month. There’s a lot of deals in the pipeline.”

CLO managers including Ares Management LP, Symphony Asset Management LLC and Credit Suisse Asset Management, LLC are marketing new CLO deals.

Octagon prices $705.5 million

Octagon Credit Investors priced $705.5 million of notes due Oct. 15, 2027 in the Octagon Investment Partners 28, Ltd./Octagon Investment Partners 28, LLC offering on Thursday, according to a market source.

The CLO sold $434 million of class A senior secured floating-rate notes (Aaa) at Libor plus 145 basis points at the top of the capital structure.

Morgan Stanley & Co. LLC was the bookrunner.

Octagon Credit Investors has priced two CLOs and refinanced one vintage 2013 CLO year to date.

The New York-based credit investment firm priced three CLO transactions in 2015.

Ares eyes $606 million CLO

Ares Management plans to price $606 million of notes due Oct. 25, 2027 in an upcoming CLO offering, according to market sources.

The Ares XL CLO Ltd./Ares XL CLO LLC deal includes $364.2 million of class A-1 senior floating-rate notes (Aaa/AAA); $25.8 million of class A-2 senior floating-rate notes (Aaa); $64.8 million of class A-3 senior floating-rate notes (Aa2); $32.4 million of class B mezzanine deferrable floating-rate notes (A2); $36 million of class C mezzanine deferrable floating-rate notes (Baa3); $28.8 million of class D mezzanine deferrable floating-rate notes (Ba3) and $54 million of subordinated notes.

Goldman Sachs & Co. is the placement agent.

Ares CLO Management II LLC will manage the CLO.

Ares Management has priced one new CLO deal and refinanced one vintage offering year to date.

The Los Angeles-based alternative asset management firm priced five CLOs and refinanced one vintage CLO in 2015.

Symphony offers $500 million

Symphony Asset Management plans to price $500 million of notes in the firm’s second CLO transaction of the year, according to a market source.

BofA Merrill Lynch is the placement agent.

The deal is expected to price within the next week.

Symphony Asset Management was last in the primary market on March 9 with the $512 million Symphony CLO XVII Ltd./Symphony CLO XVII LLC offering.

The San Francisco-based asset management firm priced one CLO and refinanced one vintage CLO in 2015.

CSAM preps $600 million

Credit Suisse Asset Management is offering $600 million of notes in a new CLO transaction, according to a market source.

Wells Fargo Securities, LLC will arrange the deal, which is expected to price within the next week.

Credit Suisse Asset Management has priced two U.S. CLOs year to date.

The unit of Credit Suisse Group AG sold four U.S. CLOs and refinanced one vintage CLO in 2015.

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