THL, Och-Ziff, CIFC round out issuance; Tall Tree, Steele Creek bring deals; volume strong

By Cristal Cody

Tupelo, Miss., Aug. 8 – The week saw new collateralized loan obligation issuance from THL Credit Advisors LLC, Och-Ziff Loan Management LP and CIFC Asset Management LLC, according to market sources on Friday.

The CLO market remains strong with more than $88 billion of transactions priced year to date in the U.S. and European markets, according to data compiled by Prospect News.

Market analysts forecast up to $120 billion of total issuance for the year.

“The CLO machine continues to produce new deals, and volumes have far surpassed most market participants’ expectations of what could get done in the first seven months of 2014,” Barclays analysts Bradley Rogoff and Eric Gross said in a note on Friday.

THL Credit Advisors sold $642.85 of notes in the THL Credit Wind River 2014-2 CLO Ltd./THL Credit Wind River 2014-2 LLC deal.

The CLO priced $140 million of class A-1 floating-rate notes at Libor plus 151 basis points, a market source said.

GreensLedge Capital Markets LLC arranged the offering.

The deal is the Boston-based firm’s second CLO offering of the year.

Och-Ziff Loan Management brought the $622.25 million OZLM VIII, Ltd./OZLM VIII, LLC deal, the New York-based firm’s third CLO offering year to date, according to a market source.

The deal was upsized from $518.5 million. The CLO priced the AAA-rated tranche of notes at Libor plus 144 bps.

BofA Merrill Lynch arranged the transaction.

CIFC Asset Management placed $626.5 million of notes in the CIFC Funding 2014-IV, Ltd./CIFC Funding 2014-IV, LLC deal via Morgan Stanley & Co. LLC, according to a market source.

The CLO priced the AAA notes at Libor plus 154 bps.

The New York City-based investment adviser, a subsidiary of CIFC Corp., has priced three CLO transactions in 2014.

In other new issuance, details emerged for Tall Tree Investment Management, LLC’s $413.1 million CLO offering.

The Nelder Grove CLO 2014-1 Ltd. vehicle sold $218 million of class A-1 floating-rate notes at Libor plus 156 bps, according to a market source.

Jefferies LLC arranged the deal.

The transaction is the Chicago-based investment advisement firm’s second CLO deal in 2014.

Also in the CLO primary market, Steele Creek Investment Management LLC brought $413.5 million of notes in a deal in the pipeline since early spring, according to a market source.

Steele Creek CLO 2014-1 Ltd./Steele Creek CLO 2014-1, LLC priced $213.8 million of AAA-rated notes at Libor plus 160 bps.

The debut CLO from the Charlotte, N.C.-based Moelis & Co. LLC subsidiary was arranged by BNP Paribas Securities Corp.

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