CLO primary forecast to slow during holiday week; CLO pipeline sits at $11.2 billion

By Cristal Cody

Tupelo, Miss., June 30 – Issuance in the CLO market is expected to slow over the week with the U.S. bond markets set to close early on Thursday and close on Friday for the Independence Day holiday, according to market sources.

More than $2.6 billion of CLO transactions priced in the week just completed as CLO managers moved to bring deals in front of the holiday, sources said.

In June, more than $14 billion of CLOs priced in the U.S. and European markets, according to data compiled by Prospect News.

About $70 billion of broadly syndicated and middle market CLOs have priced globally year-to-date, according to the data.

“CLO issuance has been brisk since 2012, significantly outpacing legacy structure amortization and producing net positive demand for loans,” Barclays analysts said in a note.

Market observers predict as much as $100 billion of total CLO issuance for the year.

Looking ahead, $11.2 billion of CLO deals are in the pipeline, Barclays said.

Eaton Vance Management is in the pipeline with a $511.87 million CLO deal, according to a market source.

Eaton Vance CLO 2014-1, Ltd./Eaton Vance CLO 2014-1 LLC is expected to price via Wells Fargo Securities LLC.

Sankaty Advisors LLC also is on the calendar with the $415.25 million Avery Point V CLO Ltd./Avery Point V CLO Corp. transaction, according to a market source.

GreensLedge Capital Markets LLC is the placement agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.