TPG brings $518 million CLO, prices AAAs at Libor plus 154 bps; deal pipeline steady

By Cristal Cody

Tupelo, Miss., Dec. 3 – In new CLO primary issuance, TPG Global, LLC sold $518 million of notes in 11 tranches in the firm’s third deal of the year, according to a market source on Wednesday.

More than $122 billion of U.S. CLOs have priced year to date, according to data compiled by Prospect News.

Issuance is expected to be busy through the first half of the month until activity winds down for the year, according to market sources.

BlueMountain Capital Management LLC is in the pipeline with the $408.6 million BlueMountain CLO 2014-4 Ltd./BlueMountain CLO 2014-4 LLC deal, sources said.

J.P. Morgan Securities LLC is the placement agent.

TPG Global sold $518 million of notes due Jan. 20, 2027 in the TICP CLO III, Ltd./TICP CLO III, LLC transaction, according to a market source.

The CLO priced $320 million of class A floating-rate notes at Libor plus 154 basis points at the top of the capital structure.

At the bottom of the stack, the CLO priced $8.75 million of class F floating-rate notes at Libor plus 610 bps.

Morgan Stanley & Co. LLC arranged the deal.

TICP CLO III Management, LLC, a unit of TPG Institutional Credit Partners, LLC, will manage the CLO.

TPG Global was most recently in the primary market on July 17 with the $513.5 million TICP CLO II, Ltd./TICP CLO II, LLC transaction.

The private equity firm is based in Fort Worth, Texas.

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