LCM raises $609.63 million; NYL prices; BlueMountain preps $506.7 million offering

By Cristal Cody

Tupelo, Miss., Feb. 20 – LCM Asset Management LLC and NYL Investors LLC tapped the CLO primary market, while another manager in the pipeline is expected to price in the week ahead, sources said on Friday.

“It’s much quieter compared to two or three weeks ago,” one source said. “It’s still difficult to get a deal done. It’s not as quick a process as it was a year ago. We’re definitely headed toward a year of much less issuance compared to last year.”

Total CLO issuance is forecast at $80 billion to $120 billion over the year.

LCM Asset Management sold $609.63 million of notes in the CLO deal and placed the AAA-rated tranche at Libor plus 151 basis points.

Also in the primary market, NYL Investors priced a $415 million CLO deal. The CLO brought the AAA notes at Libor plus 140 bps.

Looking ahead to the upcoming week, BlueMountain Capital Management LLC plans to price a $506.7 million CLO deal.

Also coming up, Invesco Senior Secured Management, Inc. is in the pipeline with the $515.5 million Betony CLO Ltd./Betony CLO LLC offering. Morgan Stanley & Co. LLC is the placement agent.

New CLO AAA notes have tightened about 5 bps over the month, while BBB notes are in about 25 bps, a market source said.

“They’re all tighter, except for double Bs,” the source said.

LCM prices $609.63 million

LCM Asset Management sold $609.63 million of notes due 2027 in a CLO transaction via Deutsche Bank Securities Inc., according to an informed source.

The LCM XVIII LP/LCM XVIII LLC CLO priced $349.75 million of class A-1 floating-rate notes at Libor plus 151 bps. Lower in the capital structure, the CLO sold $27 million of class E floating-rate notes at Libor plus 535 bps.

LCM Asset Management will manage the CLO.

The New York City-based asset management firm brought three U.S. CLO transactions in 2014.

Flatiron raises $415 million

NYL Investors priced $415 million of notes due April 15, 2027 in the Flatiron CLO 2015-1 Ltd./Flatiron CLO 2015-1 LLC offering, according to a market source.

The CLO sold $255 million of class A floating-rate notes at Libor plus 140 bps at the top of the capital structure and $8.5 million of class F floating-rate notes at Libor plus 550 bps lower in the stack.

Morgan Stanley & Co. LLC arranged the transaction.

NYL Investors will manage the CLO.

Proceeds will be used to purchase assets to reach a target portfolio of about $400 million of mostly senior secured leveraged loans.

The New York Life Insurance Co. affiliate brought one CLO deal in 2014.

BlueMountain preps deal

BlueMountain Capital Management plans to price $506.7 million of notes due 2027 in a CLO deal the week of Feb. 23, according to a market source.

The BlueMountain CLO 2015-1 Ltd./BlueMountain CLO 2015-1 LLC transaction includes $310 million of class A-1 floating-rate notes (/AAA/); $69.5 million of class A-2 floating-rate notes (/AA/); $29.7 million of class B deferrable floating-rate notes (/A/); $25.25 million of class C deferrable floating-rate notes (/BBB/); $21.25 million of class D deferrable floating-rate notes (/BB/); $9.4 million of class E deferrable floating-rate notes (/B/) and $41.6 million of subordinated notes.

Citigroup Global Markets Inc. is the placement agent.

BlueMountain Capital Management will manage the CLO.

New York City-based BlueMountain Capital priced four CLO transactions in 2014.

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