Alcentra prices $415.25 million CLO; American Money brings deal; June pipeline strong

By Cristal Cody

Tupelo, Miss., June 9 – Primary action in the CLO market remained brisk on Monday following a rush of deals in the previous week, including the largest offering since the financial crisis, sources said.

Alcentra NY LLC was in the market with a $415.25 million CLO offering, according to a market source.

The CLO priced the AAA-rated tranche at Libor plus 150 basis points, on the wider side of the range of recent issuance.

American Money Management Corp. raised $410.3 million in the AMMC CLO XIV, Ltd./AMMC CLO XIV, Corp. transaction, according to market sources.

The CLO placed the AAA tranche at Libor plus 145 bps.

“CLO new issuance has been brisk so far this year, but we believe AAA spreads will need to rally for this pace to continue,” Barclays analysts said in a note. “The increased availability of financing could help, as would an increase in Libor, as AAAs do not look nearly as cheap in yield terms as they do in spread terms.”

CLO managers priced more than $4 billion of CLOs in the U.S. and European markets in the previous week, according to market sources.

Apollo Credit Management (CLO) LLC sold $1.54 billion of notes in the ALM XIV, Ltd. CLO transaction.

More than $50 billion of CLOs have priced year to date, according to data collected by Prospect News.

The pipeline remains strong with more than $14 billion of CLOs in the works, a market source said.

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