THL prices; Banif-Banco plans €833.2 million CLO; secondary busy; spreads widen

By Cristal Cody

Tupelo, Miss., June 15 – New pricing action in the CLO market includes a $616 million offering from THL Credit Advisors LLC, according to market sources on Monday.

THL Credit Advisors priced the THL Credit Wind River 2015-1 CLO Ltd./THL Credit Wind River 2015-1 LLC deal via Credit Suisse Securities (USA) LLC. The AAA notes priced at Libor plus 150 basis points. Final pricing details were not available by press time.

Boston-based THL Credit Advisors brought three CLO transactions in 2014.

More than $58 billion of U.S. CLOs have priced year to date, according to Prospect News data.

Coming up in the European primary market, Banif-Banco Internacional do Funchal, SA plans to price a €833.2 million SME CLO transaction.

About €12 billion of euro-denominated CLOs have priced year to date following Tikehau Capital Europe Ltd.’s €354.7 million debut CLO brought in the previous week.

Secondary activity picked up over the last week with about three-quarters of the paper from the CLO 2.0 space and more than $800 million from senior AAA notes, according to a BofA Merrill Lynch market note.

“The U.S. CLO secondary market had a busy week with BWIC volumes totaling over $2 billion by original face amounts,” BofA Merrill Lynch analysts said. “Lower down at the triple-B to single-B levels, spreads widened by 10-15 [bps] amid broader-market volatility and profit-taking by hedge funds and asset managers after having tightened by 60-90 [bps] since the beginning of the year.”

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