Third-quarter volume forecast steady; Hildene brings firm’s first CLO of year; Voya prices

By Cristal Cody

Tupelo, Miss., July 17 – U.S. CLO issuance is on track to meet market forecasts for the year with more than $68 billion of volume year to date, according to informed sources and Prospect News data.

Wells Fargo Securities LLC analysts forecast $90 billion of CLO issuance in 2015.

Primary action is expected to be steady with a large deal pipeline following the slowdown in second-quarter volume, according to a Wells Fargo report.

In new issuance, Hildene Leveraged Credit LLC raised $358.3 million in the firm’s first CLO deal of the year.

Also, Voya Alternative Asset Management LLC priced a $569 million CLO offering.

Hildene prices $358.3 million

Hildene Leveraged Credit sold $358.3 million of notes due July 22, 2027 in a CLO deal, according to a market source.

The Hildene CLO IV Ltd./Hildene CLO IV LLC vehicle priced $206.5 million of class A-1A floating-rate notes at Libor plus 150 basis points in the AAA-rated tranche.

Citigroup Global Markets Inc. was the placement agent.

Hildene Leveraged Credit will manage the CLO, which is backed primarily by senior secured loans.

Proceeds of the offering will be used to purchase a portfolio of about $350 million of mostly senior secured leveraged loans.

Hildene Leveraged Credit was last in the primary market in November with its $361 million Hildene CLO III, Ltd./Hildene CLO III LLC deal.

The Stamford, Conn.-based asset management firm, part of Hildene Capital Management, LLC, priced two CLO deals in 2014.

Voya brings $569 million

Voya Alternative Asset Management priced $569 million of notes due July 15, 2027 in the Voya CLO 2015-2, Ltd./Voya CLO 2015-2 LLC deal, according to a market source.

The CLO printed $335.5 million of class A floating-rate notes at Libor plus 140 bps at the top of the capital structure.

Morgan Stanley & Co. LLC was the placement agent.

Voya Alternative Asset Management will manage the CLO, which has a two-year non-call period and a five-year reinvestment period.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

Proceeds from the offering will be used to purchase a portfolio of about $550 million of mostly senior secured leveraged loans.

The firm previously priced the $612.5 million Voya CLO 2015-1 Ltd./Voya CLO 2015-1 LLC transaction on March 3.

Voya Alternative Asset Management, part of New York City-based Voya Investment Management LLC, brought four CLO deals in 2014.

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