Fifth Street brings $416.6 million middle-market CLO; Europe mezzanine notes active

By Cristal Cody

Tupelo, Miss., Sept. 8 – Fifth Street CLO Management LLC priced a $416.6 million middle-market-backed CLO and placed the AAA-rated notes at Libor plus 192 basis points.

Looking to the broadly syndicated CLO market, new deals are expected over the month in the U.S. and European primary markets with activity accelerating before the end of the year, according to market sources.

In the secondary market, mezzanine European CLO notes were active over the previous week and on Tuesday, a source said.

Fifth Street prices

Fifth Street CLO Management priced $416.6 million of notes due Sept. 30, 2027 in a CLO deal, a market source said.

Fifth Street SLF II Ltd./Fifth Street SLF II LLC sold $175.8 million of class A-1T floating-rate notes at Libor plus 192 bps at the top of the capital structure.

At the bottom of the stack, the CLO priced $35.2 million of class D deferrable floating-rate notes at Libor plus 730 bps.

Natixis Securities America LLC arranged the offering.

The CLO is non-callable until Sept. 30, 2017. The reinvestment period ends Sept. 30, 2019.

The deal is backed by a revolving pool of middle-market loans.

Fifth Street CLO Management is a subsidiary of Fifth Street Asset Management Inc., an alternative asset management firm based in Greenwich, Conn.

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