THL Credit Advisors prices $616.25 million CLO; Anchorage Capital CDO attracts interest

By Cristal Cody

Tupelo, Miss., June 18 – Details emerged on the new CLO deal from THL Credit Advisors LLC, which brought $616.25 million of notes.

In other market activity, Moody’s Investors Service said that Anchorage Capital Group, LLC’s $540 million Anchorage Credit Funding 1, Ltd./Anchorage Credit Funding 1, LLC CDO deal that closed on June 9 demonstrates an appetite for unsecured credit risk.

The deal is collateralized primarily by corporate bonds and loans.

“ACF 1 can buy up to 100% bonds and up to 65% second-lien loans, unsecured loans and other non-first-lien senior secured assets,” Moody’s said in a CLO report. “The typical CLO 2.0 requires at least 90% of its collateral to be first-lien senior secured loans and senior secured notes. And although the vast majority of collateralized loan obligations issued since 2014 prohibit bond investments entirely in order to comply with the Volcker Rule, ACF 1’s emergence could be a sign that bonds are becoming more attractive amid the waning leveraged loan supply.”

THL Credit Advisors sold $616.25 million of notes due July 20, 2027 in the THL Credit Wind River 2015-1 CLO Ltd./THL Credit Wind River 2015-1 LLC transaction, according to a market source.

The CLO priced $384 million of class A senior secured floating-rate notes at Libor plus 150 basis points at the top of the capital structure.

Credit Suisse Securities (USA) LLC was the placement agent.

THL Credit Senior Loan Strategies LLC will manage the CLO.

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