CELF details €450 million CLO; U.S. primary activity picks up; new deals in pipeline

By Cristal Cody

Tupelo, Miss., Oct. 29 – CELF Advisors LLP, part of the Carlyle Group LP, detailed the firm’s €450 million European CLO offering of fixed- and floating-rate notes on Wednesday.

In the Carlyle Global Market Strategies Euro CLO 2014-3, Ltd. deal, the CLO manager sold €257.25 million of class A-1A senior secured floating-rate notes (Aaa//AAA) at Euribor plus 127 basis points at the top of the capital structure.

The CLO also priced €12.25 million of class E senior secured deferrable floating-rate notes (B2//B-) at Euribor plus 590 bps at the bottom of the capital stack.

BofA Merrill Lynch was the placement agent.

London-based CELF Advisors was previously in the primary market in June with the €402 million Carlyle Global Market Strategies Euro CLO 2014-2, Ltd. deal and in February with the €375 million Carlyle Global Market Strategies Euro CLO 2014-1, Ltd. offering.

Anchorage Capital in market

In the U.S. primary market, Anchorage Capital Group, LLC priced the Anchorage Capital CLO 5, Ltd./Anchorage Capital CLO 5, LLC deal, a source said. Final pricing details were not available by press time.

The offering was expected to include $2 million of class X floating-rate notes (//AAA); $305 million of class A floating-rate notes (//AAA); $57.5 million of class B floating-rate notes; $30 million of class C floating-rate notes; $35 million of class D floating-rate notes; $30 million of class E floating-rate notes; $12.5 million of class F floating-rate notes and $48 million of subordinated notes.

Morgan Stanley & Co. LLC was the placement agent.

Proceeds will be used to purchase a portfolio of about $500 million of primarily senior secured leveraged loans.

New York City-based Anchorage Capital previously priced the $517.75 million Anchorage Capital CLO 3, Ltd./Anchorage Capital CLO 3, LLC deal in February and the $621.5 million Anchorage Capital CLO 4, Ltd./Anchorage Capital CLO 4, LLC offering in May.

Deal pipeline fills

Looking ahead, CLO issuance is expected to be steady through the rest of the year, a source said.

Coming up, Telos Asset Management LLC intends to price the $359.9 million Telos CLO 2014-6, Ltd./Telos CLO 2014-6 LLC deal via BNP Paribas Securities Corp.

Telos Asset Management, a subsidiary of New York-based Tiptree Financial Inc., was last in the primary market in April with the $412.35 million Telos CLO 2014-5, Ltd./Telos CLO 2014-5 LLC deal.

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