Anchorage, Silvermine price; NewStar brings middle-market CLO; BBs firm in secondary

By Cristal Cody

Tupelo, Miss., March 16 – More than $4 billion of CLOs have priced in March, including new deals from Anchorage Capital Group, LLC, Silvermine Capital Management LLC and NewStar Financial, Inc., according to market sources.

Anchorage Capital Group priced an upsized $569.93 million CLO deal and placed the AAA tranche of notes at Libor plus 154 basis points.

Silvermine Capital Management tapped the market with a $512.4 offering and priced the AAA slice at Libor plus 155 bps.

NewStar Financial brought a $496.1 million middle-market CLO. The AAA notes priced at Libor plus 180 bps.

In the secondary market, CLO spreads tightened marginally by 10 bps in BB notes over the previous week, BofA Merrill Lynch analysts said in a market note.

“Secondary market activity was moderate in the U.S. this week with BWIC volumes totaling just over $650 million concentrated once again in post-crisis deals,” the analysts said.

CLO 2.0 paper made up more than $540 million of the week’s total, according to the note.

European CLO secondary market volumes were strong with nearly €300 million on the BWIC lists, BofA Merrill Lynch said.

Euro CLO spreads tightened by about 20 bps for 2.0 BB deals.

Anchorage Capital upsizes

Anchorage Capital Group priced an upsized $569.93 million nine-tranche CLO deal, according to a market source.

Anchorage Capital CLO 6, Ltd./Anchorage Capital CLO 6, LLC sold $310.75 million of class A-1 senior secured floating-rate notes at Libor plus 154 bps at the top of the capital structure.

The deal was upsized from $518.5 million.

J.P. Morgan Securities LLC arranged the offering.

Anchorage Capital Group will manage the CLO.

The notes are due April 15, 2027.

Proceeds will be used to purchase a portfolio of about $500 million of primarily senior secured leveraged loans.

Anchorage Capital Group, a New York City-based global asset manager, brought three CLO transactions in 2014.

Silvermine prices CLO

Silvermine Capital Management brought a $512.4 eight-part CLO offering of fixed- and floating-rate notes, according to a market source.

The ECP CLO 2015-7 Ltd./ECP CLO 2015-7 LLC vehicle priced $321.1 million of class A-1 floating-rate notes at Libor plus 155 bps in the AAA-rated tranche.

Citigroup Global Markets Inc. arranged the deal.

Silvermine Capital Management LLC will manage the CLO.

The Stamford, Conn.-based employee-owned asset management firm priced three CLO deals in 2014.

NewStar raises $496.1 million

NewStar Financial priced a $496.1 million six-part middle-market CLO deal, according to a source.

NewStar Commercial Loan Funding 2015-1 LLC sold $253.5 million of class A-1 senior secured floating-rate notes at Libor plus 180 bps in the senior tranche.

Wells Fargo Securities, LLC was the placement agent.

NewStar Financial will manage the CLO.

The notes are due April 20, 2027.

NewStar Financial intends to use the proceeds from the deal to purchase a $500 million portfolio of middle-market loans.

The Boston-based middle-market commercial lender brought three CLO deals in 2014.

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