Columbia Management preps $513.5 million CLO; Mariner plans second deal; BWIC volume up

By Cristal Cody

Tupelo, Miss., March 13 – CLO managers Columbia Management Investment Advisors LLC and Mariner Investment Group, LLC are in the pipeline with transactions, according to market sources.

Columbia Management Investment Advisors plans to price a $513.5 million CLO deal.

Mariner Investment Group is offering $502 million of notes in the firm’s second collateralized loan obligation offering.

In November, Mariner launched its CLO business and hired a 13-person corporate credit team from majority interest partner ORIX USA Corp.

Mariner Investment Group priced its first CLO deal, the $502 million Elm CLO 2014-1 Ltd./Elm CLO 2014-1 LLC transaction, in December.

CLO issuance remains strong with more than $15 billion priced year to date, according to data compiled by Prospect News.

“CLO spreads have held firm despite a large amount of supply in March,” according to a Wells Fargo Securities, LLC report on Friday from senior analyst Dave Preston and associate analyst Jason McNeilis.

“BWIC volume for the week was more than a billion dollars (almost double the usual weekly average), and primary issuance for March is $4.9 billion,” the analysts said. “Despite the increase in selling, spreads showed a bias toward tightening across the capital stack.”

Cent CLO 23 in pipeline

Columbia Management Investment Advisors plans to price $513.5 million of notes due April 17, 2026 in a CLO deal, according to a market source.

The Cent CLO 23 Ltd./Cent CLO 23 Corp. transaction includes $310 million of class A-1 floating-rate notes (/AAA/); $39 million of class A-2A floating-rate notes (/AA/); $30 million of class A-2B fixed-rate notes (/AA/); $34 million of class B deferrable floating-rate notes (/A/); $25 million of class C deferrable floating-rate notes (/BBB/); $22 million of class D deferrable floating-rate notes (/BB/); $10 million of class E deferrable floating-rate notes (/B/) and $43.5 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

The transaction is backed primarily by a revolving pool of broadly syndicated senior secured corporate loans.

Columbia Management, a Boston-based investment management firm, priced two CLO deals in 2014.

Mariner offers $502 million

Mariner Investment Group intends to price $502 million of notes due April 20, 2023 in the CLO offering via BofA Merrill Lynch, according to a market source.

The Mariner CLO 2015-1 LLC transaction includes $331 million of class A floating-rate notes (/AAA/); $38.25 million of class B-1 floating-rate notes (/AA/); $17 million of class B-2 fixed-rate notes (/AA/); $26.25 million of class C deferrable floating-rate notes (/A/); $25.25 million of class D deferrable floating-rate notes (/BBB/); $21 million of class E deferrable floating-rate notes (/BB/) and $43.25 million of subordinated notes.

The transaction is backed primarily by a static pool of broadly syndicated senior secured loans.

Mariner Investment Group is a New York City-based alternative asset management firm.

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