TCW sees ‘strong investor demand’ for $408.6 million CLO; non-high-grade secondary active

By Cristal Cody

Tupelo, Miss., Aug. 10 – The TCW Group saw “strong investor demand across all tranches” of its new CLO offering, Jerry Cudzil, co-head of credit and co-manager of the CLO, said in a news release on Thursday.

The CLO sold $408.6 million of notes in six tranches, according to a market source.

In other activity, secondary trading in non-high-grade securities has climbed over the week.

On Wednesday, $123.4 million of high-grade CBO/CDO/CLO issues and $327.9 million of non-investment-grade securities were traded, according to Trace.

In the previous session, secondary market volume included $127.4 million of high-grade securities and $106.92 million of non-high-grade CBO/CDO/CLO issues. Monday’s session saw $74.91 million of investment-grade issues and $86.89 million of non-investment-grade securities trade.

TCW Group priced and closed on a new $408.6 million CLO transaction, according to a market source and a company news release on Thursday.

TCW CLO 2017-1, Ltd. priced notes due July 29, 2029.

The $256 million of class A senior secured floating-rate notes priced with a discount margin of Libor plus 128 basis points in the AAA-rated slice.

Jefferies LLC arranged the transaction.

TCW Asset Management Co. LLC will manage the CLO.

The CLO has a two-year non-call period and a four-year reinvestment period.

The deal is backed primarily by broadly syndicated first-lien senior secured loans.

The global asset management company is based in Los Angeles.

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