Octagon raises $722 million; Prudential, Greywolf price; BlueMountain eyes $408.6 million

By Cristal Cody

Tupelo, Miss., Dec. 2 – U.S. CLO annual deal totals climbed to more than $121 billion following about $2.28 billion of new issuance from Octagon Credit Investors, LLC, Prudential Investment Management, Inc., Carlyle Investment Management LLC and Greywolf Capital Management LP, according to market sources.

Octagon Credit Investors priced the AAA-rated notes in its CLO deal at Libor plus 148 basis points.

Prudential Investment Management brought the AAA notes in the Dryden 36 Senior Loan Fund/Dryden 36 Senior Loan Fund LLC transaction at Libor plus 147 bps.

Carlyle Investment Management placed the AAA slice in its offering at Libor plus 152 bps.

In the Greywolf Capital Management transaction, the AAA tranche priced at Libor plus 153 bps.

The deal pipeline is expected to see steady issuance in the first half of the month before activity winds down for the year, according to market sources.

Coming up, BlueMountain Capital Management LLC intends to price a $408.6 million CLO offering, according to market sources. The AAA notes are talked to price in the Libor plus 155 bps to Libor plus 160 bps area.

Octagon brings $722.2 million

Octagon Credit Investors raised $722.2 million of notes due Nov. 25, 2025 in the CLO transaction, according to a market source.

Octagon Investment Partners XXII, Ltd./Octagon Investment Partners XXII, LLC sold $424.5 million of class A senior secured notes at Libor plus 148 bps at the top of the capital stack.

At the bottom of the structure, the CLO priced $14 million of class F secured deferrable floating-rate notes at Libor plus 630 bps.

Morgan Stanley & Co. LLC was the placement agent.

Octagon Credit Investors has priced four CLO deals over the year.

The New York-based affiliate of CCMP Capital Advisors, LLC brought four CLO transactions in 2013.

Prudential taps market

Prudential Investment Management priced $609.3 million of notes due Dec. 15, 2025 in the Dryden 36 Senior Loan Fund deal, according to a market source.

The CLO sold $375 million of class A senior secured floating-rate notes at Libor plus 147 bps at the top of the deal structure. Lower in the mezzanine tranches, the CLO priced $24.6 million of class E senior secured deferrable floating-rate notes at Libor plus 520 bps.

Goldman Sachs & Co. was the placement agent.

Prudential previously was in the primary market this year with two U.S. CLO deals.

The firm is the primary asset management business of Newark, N.J.-based Prudential Financial, Inc.

Carlyle places 2014-5 CLO

Carlyle Investment Management sold $512 million of notes in the Carlyle Global Market Strategies CLO 2014-5, Ltd./Carlyle Global Market Strategies CLO 2014-5 LLC transaction, according to a market source.

The CLO priced $318 million of class A-1 floating-rate notes at Libor plus 152 bps at the top of the structure and $4 million of class E floating-rate notes at Libor plus 591 bps at the bottom of the stack.

Citigroup Global Markets Inc. was the placement agent.

Carlyle Investment Management has priced four U.S. CLO deals in 2014.

The asset management firm is an affiliate of the Washington, D.C.-based Carlyle Group.

Greywolf sells CLO

Greywolf Capital Management priced $437.35 million of floating-rate and subordinated notes due Dec. 15, 2026 in a CLO offering, according to a market source.

Greywolf CLO IV, Ltd./Greywolf CLO IV, LLC sold $269.18 million of class A-1 floating-rate notes at Libor plus 153 bps at the top of the capital structure.

The CLO sold $10.2 million of class E secured deferrable floating-rate notes at Libor plus 665 bps at the bottom of the deal.

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

Greywolf Capital Management was previously in the primary market in March with the $640.99 million Greywolf CLO III, Ltd./Greywolf CLO III, LLC transaction.

The Purchase, N.Y.-based investment management firm priced its first post-financial crisis CLO deal in 2013.

BlueMountain on tap

BlueMountain Capital Management intends to price $408.6 million of notes due 2026 in the BlueMountain CLO 2014-4 Ltd./BlueMountain CLO 2014-4 LLC deal, according to market sources.

The offering includes $237.9 million of class A-1 floating-rate notes (/AAA/); $15 million of class A-2 fixed-rate notes (/AAA/); $39.4 million of class B-1 floating-rate notes (/AA/); $5 million of class B-2 fixed-rate notes (/AA/); $32.9 million of class C deferrable floating-rate notes (/A/); $21.5 million of class D deferrable floating-rate notes (/BBB-/); $16.6 million of class E deferrable floating-rate notes (/BB-/); $6.6 million of class F deferrable floating-rate notes (/B/) and $33.7 million of subordinated notes.

JPMorgan is the placement agent.

BlueMountain Capital Management has priced three CLO transactions over the year.

The New York City-based private investment firm brought three CLO deals in 2013.

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