Marathon sells $460.75 million CLO; Telos prices; Tennenbaum brings middle-market CLO

By Cristal Cody

Tupelo, Miss., Nov. 4 – U.S. CLO managers brought new issuance in the broadly syndicated and middle-market collateralized loan obligation markets, according to informed sources.

Marathon Asset Management LP priced $460.75 million of notes in the Marathon CLO VII Ltd./Marathon CLO VII LLC deal, a source said.

The CLO placed $272.65 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 basis points at the top of the structure.

The CLO priced $18.65 million of class D senior secured deferrable floating-rate notes (/BB-/) at Libor plus 540 bps at the bottom of the capital stack.

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

Marathon Asset Management, a New York City-based global credit manager, previously priced the $490.25 million Marathon CLO VI Ltd./Marathon CLO VI LLC deal in April.

Also in the primary market, Telos Asset Management LLC brought $359.9 million of notes due Nov. 30, 2026 in a deal that had been in the pipeline for months, according to a market source.

Telos CLO 2014-6, Ltd./Telos CLO 2014-6 LLC sold $161.5 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 bps at the top of the capital structure and $16.5 million of class E deferrable floating-rate notes at Libor plus 500 bps at the bottom of the stack.

BNP Paribas Securities Corp. arranged the offering.

Telos Asset Management, a subsidiary of New York-based Tiptree Financial Inc., was last in the primary market in April with the $412.35 million Telos CLO 2014-5, Ltd./Telos CLO 2014-5 LLC deal.

Tennenbaum prices CLO

In middle-market CLO issuance, Tennenbaum Capital Partners LLC priced $337.5 million of loans and notes due Oct. 24, 2024, according to a market source.

Tennenbaum Senior Loan Funding III LLC sold $35 million of class A-R floating-rate loans (/AAA/) at Libor plus 230 bps, $100 million of class A-1T floating-rate notes (/AAA/) at Libor plus 205 bps, $60.5 million of class A-2T floating-rate notes (/AAA/) at Libor plus 205 bps and $142 million of equity notes in the deal.

Natixis Securities Americas LLC arranged the transaction.

Tennenbaum, a Los Angeles-based alternative investment management firm, was previously in the primary market in February with the $277.75 million Tennenbaum Senior Loan SPV 2014-1 LLC deal.

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