September primary action remains light; Octagon preps fourth deal, offers $820 million CLO

By Cristal Cody

Tupelo, Miss., Sept. 23 – Primary action remains light as forecast for September, while the fall pipeline is showing more signs of activity as managers prepare to price deals before the end of the year, according to market sources on Wednesday.

Coming up, Octagon Credit Investors, LLC plans to price $820 million of notes in its fourth CLO offering of the year.

CLO managers year to date have priced about $84.5 billion of CLOs, according to data compiled by Prospect News.

Market analysts forecasts about $100 billion of total issuance for the year.

Octagon Credit Investors plans to price $820 million of notes due Oct. 20, 2026 in a CLO transaction, according to a market source.

The Octagon Investment Partners 25, Ltd./Octagon Investment Partners 25, LLC offering includes $3 million of class X floating-rate notes (/AAA); $496 million of class A floating-rate notes (/AAA); $90 million of class B floating-rate notes (/AA); $78 million of class C deferrable floating-rate notes; $40 million of class D deferrable floating-rate notes; $20 million of class E-1 deferrable floating-rate notes; $12 million of class E-2 deferrable floating-rate notes; $10 million of class F deferrable floating-rate notes and $71 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

The CLO will have a two-year non-call period and a five-year reinvestment period.

The deal is expected to close on Oct. 29.

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