CSAM prices $1.03 billion; Par-Four readies $465.01 million CLO; Telos joins pipeline

By Cristal Cody

Tupelo, Miss., July 8 – Credit Suisse Asset Management, LLC sold $1,036,000,000 of notes in the year’s third $1 billion-plus CLO transaction, according to a market source on Tuesday.

CSAM priced the AAA-rated notes at Libor plus 145 basis points.

A $1 billion-plus CLO deal has priced in each of the past three months.

In May, Onex Credit Partners LLC priced the $1,001,750,000 OCP CLO 2014-6 Ltd./OCP CLO 2014-6 Corp. offering, while Apollo Credit Management (CLO) LLC brought the $1,542,100,000 ALM XIV, Ltd. deal in June.

More than $70 billion of CLOs have priced year to date in the U.S. and European markets.

J.P. Morgan Securities LLC analysts project as much as $120 billion of total issuance for the year.

About $10 billion of CLO transactions are in the near-term pipeline, according to a market source.

Par-Four Investment Management, LLC plans to price a $465.01 million CLO offering, according to a market source.

Telos Asset Management LLC also joins the pipeline with a new CLO deal.

CSAM prices $1.03 billion CLO

Credit Suisse Asset Management sold $1,036,000,000 of notes due July 21, 2026 in the Madison Park Funding XIV Ltd./Madison Park Funding XIV LLC offering, according to a market source.

Madison Park Funding XIV priced $5 million of class X floating-rate notes at Libor plus 100 bps and $620 million of class A floating-rate notes at Libor plus 145 bps.

The CLO sold $135 million of class B floating-rate notes at Libor plus 215 bps; $52.5 million of class C floating-rate notes at Libor plus 320 bps; $60 million of class D floating-rate notes at Libor plus 360 bps; $53 million of class E floating-rate notes at Libor plus 475 bps and $7 million of class F floating-rate notes at Libor plus 540 bps.

The deal included $103.5 million of subordinated notes.

Morgan Stanley & Co. LLC was the placement agent.

Credit Suisse Asset Management will manage the CLO, which is backed primarily by senior secured loans.

Proceeds from the deal will be used to purchase about $1 billion of mostly senior secured leveraged loans.

The transaction is the third CLO offering that Credit Suisse Asset Management, a unit of Credit Suisse Group AG, has priced in 2014. The firm brought the $746.04 million Madison Park Funding XIII Ltd./Madison Park Funding XIII LLC transaction on Feb. 3 and the $817.69 million Madison Park Funding XII Ltd./Madison Park Funding XII LLC deal on May 8.

Par-Four plans CLO

Par-Four Investment Management intends to price $465.01 million of notes due July 20, 2026 in a CLO deal, according to a market source.

The Tralee CLO III, Ltd./Tralee CLO III, LLC offering includes $150 million of class A-1 senior secured floating-rate notes (Aaa); $128 million of class A-2 senior secured floating-rate notes (Aaa); $64 million of class B senior secured floating-rate notes (Aa2); $29 million of class C deferrable floating-rate notes (A2); $24 million of class D deferrable floating-rate notes (Baa3); $19.75 million of class E deferrable floating-rate notes (Ba2) and $50.26 million of subordinated notes.

Deutsche Bank Securities Inc. is the placement agent.

Par-Four Investment will manage the CLO, which is backed primary by first-lien senior secured loans and eligible investments.

Par-Four Investment Management is a Woodcliffe Lake, N.J.-based firm that priced the $416 million Tralee CLO II, Ltd. transaction in 2013.

Telos plans deal

Telos Asset Management announced on Tuesday that it plans to bring the Telos CLO 2014-6, Ltd. transaction.

Telos CLO 2014-6 has entered into a $140 million credit facility in anticipation of the issuance of CLO notes, according to the statement.

Telos said it is the CLO servicer.

The firm priced the $412.35 million Telos CLO 2014-5, Ltd./Telos CLO 2014-5 LLC deal on April 11.

As of Monday, Telos said it has about $1.8 billion of assets under management, which consists of five matched funded CLOs and a CLO warehouse.

The asset management company, a subsidiary of New York-based Tiptree Financial Inc., priced the $365.3 million Telos CLO 2013-4, Ltd. offering and the $361.4 million Telos CLO 2013-3, Ltd. deal in 2013.

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