Trimaran, Prudential price; Guggenheim brings CLOs; CQS sells €362.2 million; Onex eyed

By Cristal Cody

Tupelo, Miss., March 31 – More than $29 billion of CLO deals priced in the first quarter, ahead of the pace set in the same periods in 2013 and 2014, according to market sources and data compiled by Prospect News on Tuesday.

In the first three months of 2013, $25.3 billion of CLOs had priced, while $21.8 billion of deals came in the same period in 2014, according to a Wells Fargo Securities, LLC report.

In new primary activity, Trimaran Advisors, LLC priced a $463.8 million CLO transaction.

Also in the U.S. market, Prudential Investment Management, Inc. brought a $515.2 million deal.

In other new issuance, Guggenheim Partners Investment Management LLC priced a $558.9 million CLO.

Guggenheim also sold $857 million of notes in the NZCG Funding 2 Ltd. CLO transaction. Final pricing details were not available by press time.

Also in the U.S. primary market, Alcentra NY LLC priced $508 million of notes in the Shackleton 2015-VII CLO Ltd. transaction. Final pricing details were not immediately available.

In other pricing action, CQS Management, Ltd. tapped the European market with a €362.2 million CLO transaction.

CLO issuance has been strong but volume “should dip in Q2 due to a lack of loan supply,” Wells Fargo Securities senior analyst Dave Preston and associate analyst Jason McNeilis said in a second-quarter market outlook.

“It appears CLO managers will find it increasingly difficult to find collateral for new-issue CLOs,” the analysts said. “With a limited forward loan calendar, it appears that CLO supply cannot continue at this pace.”

Institutional loan issuance through March 27 was $53.9 billion, compared to about $129 billion in the first quarter of 2014, according to the report.

Looking ahead to deals coming up, Onex Credit Partners, LLC is in the pipeline with a $510 million offering.

Trimaran brings Catamaran CLO

Trimaran Advisors priced $463.8 million of notes due April 22, 2027 in the Catamaran CLO 2015-1 Ltd./Catamaran CLO 2015-1 LLC transaction, according to a market source and parent company KCAP Financial, Inc.

The CLO sold $283.5 million of class A floating-rate notes at Libor plus 155 basis points at the top of the capital stack.

Barclays was the placement agent.

Trimaran Advisors will manage the CLO.

KCAP said in a news release that it will invest about $12 million across certain junior tranches of notes issued by the fund.

The notes are collateralized primarily by broadly syndicated senior secured loans.

Trimaran Advisors, a New York-based portfolio company of KCAP Financial, priced two CLO transactions in 2014.

Prudential prices CLO

Prudential Investment Management priced a $515.2 million CLO offering, according to a market source.

Dryden 38 Senior Loan Fund/Dryden 38 Senior Loan Fund LLC sold $310 million of class A floating-rate notes at Libor plus 143 bps in the senior tranche.

Morgan Stanley & Co. LLC was the placement agent.

Collateral consists of broadly syndicated first-lien senior secured corporate loans.

The transaction is Prudential’s second CLO deal of the year.

The primary asset management business of Newark, N.J.-based Prudential Financial, Inc., brought three U.S. CLO offerings in 2014.

Guggenheim taps market

Guggenheim Partners Investment Management sold $558.9 million of notes due April 15, 2027 in the Kitty Hawk CLO 2015-1 LLC/Kitty Hawk CLO 2015-1 Ltd. deal, according to a market source.

The CLO priced $331 million of class A-1 senior secured floating-rate notes at Libor plus 151 bps at the top of the capital structure.

MUFG arranged the offering.

Guggenheim will manage the CLO.

The notes are collateralized mainly by broadly syndicated first-lien senior secured loans.

Guggenheim brought one new CLO deal and reopened a vintage 2012 CLO in 2014.

The investment management firm is based in New York and Chicago.

CQS brings €362.2 million

In the European primary market, CQS Management priced a €362.2 million CLO transaction, according to a market source.

Grosvenor Place 2015-1 BV sold €202.8 million of class A-1a floating-rate notes at Euribor plus 130 bps in the AAA-rated tranche.

Deutsche Bank AG, London Branch arranged the transaction.

CQS Investment Management will manage the CLO.

The London-based global management asset firm was last in the CLO primary market in 2013.

Onex offers $510 million

Looking ahead, Onex Credit Partners plans to price $510 million of notes due 2027 in the OCP CLO 2015-8 Ltd./OCP CLO 2015-8 Corp. offering, a source said.

The deal includes $315 million of class A-1 notes (/AAA/); $35 million of class A-2a notes (/AA/); $30 million of class A-2b notes; $32 million of class B notes (/A/); $25 million of class C notes (/BBB/); $23 million of class D notes (/BB/); $10 million of class E notes (/B/) and $40 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

The notes are backed primarily by a revolving pool of broadly syndicated senior secured loans.

Onex Credit Partners, the credit investing arm of Toronto-based Onex Corp., priced three CLO transactions in 2014.

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