CLO market quiet as deal pipeline builds; new issue spreads forecast mostly unchanged

By Cristal Cody

Tupelo, Miss., Jan. 13 – CLO market activity remained mostly light on Tuesday with primary action expected before the month is up, according to informed sources.

“It’s very quiet,” one source said.

The year’s first new offerings are expected over the next few weeks from CLO managers including CVC Credit Partners, LLC, PineBridge Investments LLC and Apollo Credit Management (CLO) LLC, sources said.

CVC Credit Partners plans to price $510 million of notes in the Apidos CLO XX/Apidos CLO XX LLC transaction via Credit Suisse Securities (USA) LLC.

PineBridge Investments is in the pipeline with the Galaxy XIX CLO Ltd./Galaxy XIX CLO LLC deal via Citigroup Global Markets Inc., while Apollo Credit Management is expected to bring an offering via Morgan Stanley & Co., according to market sources.

Market analysts forecast up to $120 billion of U.S. CLO issuance in 2015.

U.S. CLO managers priced $132.45 billion of CLOs in 251 deals in 2014, according to Prospect News data.

U.S. CLO deals priced weaker in late 2014, and market sources expect near-term AAA issuance to be in the same Libor plus 150 basis points to Libor plus 160 bps range.

“Not much is expected to be different in terms of pricing,” an informed source said.

© 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.