Octagon Credit Investors brings $609 million CLO; U.S. volume climbs to $60.1 billion

By Cristal Cody

Tupelo, Miss., June 16 – Octagon Credit Investors, LLC priced a $608,965,000 CLO deal and placed the AAA-rated notes at Libor plus 142 basis points, on the wider side of recent issuance, a source said on Tuesday.

CLO managers have priced AAA notes as tight as Libor plus 130 bps in June.

U.S. CLO issuance climbed to $60.1 billion year to date, according to data compiled by Prospect News.

Market analysts forecast about $100 billion of U.S. CLO issuance in 2015.

Octagon Credit Investors priced $608,965,000 of notes due July 15, 2027 in the Octagon Investment Partners XXIII, Ltd./Octagon Investment Partners XXIII, LLC CLO transaction, according to a market source.

The CLO sold $193.8 million of class A-1 floating-rate notes Libor plus 142 bps at the top of the capital structure.

Wells Fargo Securities, LLC was the placement agent.

Octagon Credit Investors will manage the CLO.

The CLO has a 1.3-year non-call period and a four-year reinvestment period.

The transaction is baked primarily by first-lien senior secured loans.

Proceeds will be used to purchase a portfolio of about $600 million of mainly senior secured leveraged loans.

Octagon Credit Investors previously priced the $758.9 million Octagon Investment Partners XXIV, Ltd. deal on April 14.

The New York-based affiliate of CCMP Capital Advisors, LLC brought four CLO transactions in 2014.

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