CLO deals in pipeline; THL to exit CLO equity investments, sells interests in two CLOs

By Cristal Cody

Tupelo, Miss., Aug. 6 – Several CLO deals are in the near-term pipeline, while market analysts forecast at least $90 billion of total issuance for the year, according to sources on Thursday.

CLO managers including Credit Suisse Asset Management, LLC, Columbia Management Investment Advisors, LLC and Loomis, Sayles & Co., LP are expected to tap the market.

Credit Suisse Asset Management plans to price $620 million of notes due Oct. 20, 2026 in the Madison Park Funding XVIII Ltd./Madison Park Funding XVIII LLC deal via Morgan Stanley & Co. LLC.

Columbia Management Investment Advisors, LLC is offering $509 million of notes in the Cent CLO 24 Ltd./Cent CLO 24 Corp. transaction. Goldman Sachs & Co. is the placement agent.

Also, Loomis Sayles intends to sell $413.75 million of notes in the Loomis Sayles CLO II, Ltd./Loomis Sayles CLO II, LLC offering. J.P. Morgan Securities LLC is the placement agent.

More than $76 billion of CLOs have priced year to date, according to data compiled by Prospect News.

THL sells residual interests

In other activity, middle market lender THL Credit, Inc. said in its second-quarter earnings results on Thursday that it has divested residual interests in two CLOs since July.

Christopher J. Flynn, THL Credit’s co-chief executive officer, said in the release that “although we are very pleased with the performance of our CLO equity investments, we expect to exit these structured credit products and some of our larger common equity investments over time and as opportunities allow, providing us with capital to redeploy into senior secured loan investments.”

From July 1 through Thursday, THL Credit said it sold its CLO residual interests in Adirondack Park CLO Ltd. and Sheridan Square, CLO Ltd. for proceeds of $12.7 million.

THL Credit Advisors LLC, which manages THL Credit’s investment activities, has priced one CLO deal in 2015, the $616.25 million THL Credit Wind River 2015-1 CLO Ltd./THL Credit Wind River 2015-1 LLC vehicle brought to market on June 10.

The Boston-based firm placed three CLOs in 2014.

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