Monroe Capital prices; Alcentra, LCM in deal pipeline; CLO issuance breaks 2013 record

By Cristal Cody

Tupelo, Miss., Aug. 22 – CLO issuance slowed over the week with a handful of deals priced, according to market sources on Friday.

“Lots of people” are out for the last part of the month on summer vacations, one source said. “It’s been quiet.”

Monroe Capital Management, LLC priced a $357.84 million middle market-backed CLO, the firm’s first deal since the financial crisis, according to market sources.

Monroe Capital CLO 2014-1 Ltd./Monroe Capital CLO 2014-1 LLC sold the AAA-rated tranche of notes at Libor plus 180 basis points.

Deutsche Bank Securities Inc. arranged the transaction.

The offering is collateralized mainly by small and medium enterprise and broadly syndicated senior secured corporate loans.

According to a Moody’s Investors Service report, Monroe Capital also manages one SME CLO that priced in 2006 and expects to be a repeat issuer of SME CLOs going forward.

The Chicago-based middle market commercial lending firm is an affiliate of Monroe Capital LLC.

More than $83 billion of U.S. dollar-denominated CLOs have priced year to date, according to data compiled by Prospect News.

CLO issuance has surpassed the 2013 record of $82.61 billion, Barclays analysts said in a note on Friday.

Coming up in primary activity, Alcentra Ltd. plans to price a €414 million CLO transaction, according to a market source.

Also, in the U.S. deal market, LCM Asset Management LLC intends to offer the $410.5 million LCM XVII LP/LCM XVII LLC transaction, according to a market source.

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