NYL Investors plans add-on; Spire Partners offers euro CLO; CBO/CDO/CLO notes gain

By Cristal Cody

Tupelo, Miss., June 4 – CLO deal volume is slowly picking back up after primary action ceased in March.

NYL Investors LLC plans to price up to $3 million of new class X junior deferrable fixed-rate notes with a 10% coupon in a vintage 2018 broadly syndicated CLO.

Spire Partners LLP is offering new euro-denominated notes in the manager’s first CLO deal of the year.

The CLO manager was last in the primary market when it issued the €447.8 million Aurium CLO V DAC deal on April 4, 2019.

More than $25 billion of dollar-denominated CLOs have priced year to date, with market participants anticipating only about $25 billion more of deal volume for the rest of the year.

On Wednesday, Moody’s Investors Service announced it placed additional CLO securities on review for possible downgrade with a total now of 1,100 U.S. CLO securities and 351 Europe, Middle East and Africa broadly syndicated CLO securities on review for possible downgrade.

While pricing action has slowed, the secondary market continues to see strong volume.

On Wednesday, $776.99 million of high-grade CBO/CDO/CLO notes and $213.35 million of non-investment-grade securities were traded, Trace data shows.

Secondary market volume was up from $630.78 million of high-grade CBO/CDO/CLO paper traded on Tuesday and $461.46 million on Monday.

Trading volume also was higher in lower-rated securities from $139.36 million of trading volume on Tuesday and $71.76 million at the week’s start.

Prices improved over the past session.

High-grade paper averaged 96.40 on Wednesday, better from 94.20 on Tuesday but down slightly from the 96.80 average on Monday.

Paper further down the capital structure rose to 72.80 in the prior session from 72.40 on Tuesday, though off Monday’s average of 75.70.

NYL offers tranche

NYL Investors plans to price up to $3 million of new class X junior deferrable fixed-rate notes with a 10% coupon in the vintage 2018 Flatiron CLO 18 Ltd./Flatiron CLO 18 LLC transaction, according to a notice on Wednesday.

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

The original $511.6 million CLO notes due April 17, 2031 were issued on April 4, 2018.

The CLO is backed mostly by broadly syndicated first-lien senior secured corporate loans.

NYL Investors is a New York-based subsidiary of mutual life insurance company New York Life Insurance Co.

Spire Partners plans deal

Spire Partners plans to price a new euro-denominated CLO transaction, the manager’s first CLO of 2020, according to market sources.

The Aurium CLO VI DAC offering is expected to include €124.75 million of class A floating-rate notes (AAA/AAA); €25.5 million of class B floating-rate notes (AA/AA); €16 million of class C floating-rate notes (A/A); €13.2 million of class D floating-rate notes (BBB/BBB-); €10.5 million of class E floating-rate notes (BB-/BB-) and a euro-denominated subordinated tranche.

The issue is backed primarily by senior secured loans and bonds.

Spire Partners is a fund management firm based in London.

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