KKR raises €516.1 million; Oak Hill adds fixed/floating-rate notes; Garrison prices CLO

By Cristal Cody

Tupelo, Miss., May 18 – European CLO issuance year to date climbed to more than €6 billion following a deal from KKR Credit Advisors (Ireland), according to market sources and data compiled by Prospect News.

KKR Credit Advisors (Ireland) priced a €516.1 million CLO.

Also in Europe, Oak Hill Advisors (Europe), LLP brought a total of €416.7 million of notes in an upsized offering.

In the previous week, Blackstone/GSO Debt Funds Management Europe Ltd. priced the €415 million Orwell Park CLO Ltd. deal.

In new U.S. primary action, Garrison Investment Group, LP brought a $413.7 million CLO.

U.S. managers have priced more than $46 billion of CLOs year to date, data shows.

In the secondary market, U.S. CLO BB-rated spreads remain strong and tightened 15 basis points to the Libor plus 625 bps area over the previous week, according to a BofA Merrill Lynch report. BB-rated notes have come in 80 bps year to date.

AAAs improved 2 bps over the week to the Libor plus 145 bps area. AAA-rated notes have tightened 18 bps year to date, the note said.

“Secondary activity picked up meaningfully in the U.S. with BWIC volumes totaling $1.2 billion concentrated largely in post-crisis deals,” BofA Merrill Lynch analysts said in the report. “Triple-As comprised the largest share among 2.0 line items. With primary issuance having slowed down from April, spread levels tightened across the entire 2.0 capital stack.”

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