Details eyed on Octagon, Fortress, Jefferies CLOs; KKR prices €516.8 million; volume drops

By Cristal Cody

Tupelo, Miss., Oct. 6 – Details emerged on new CLO issuance from Octagon Credit Investors, LLC, Fortress Investment Group LLC, Jefferies Finance LLC and KKR Credit Advisors (Ireland).

Octagon Credit Investors priced an $820 million CLO and placed the AAA-rated tranche of notes at Libor plus 146 basis points.

Fortress Investment Group brought a $425.4 million upsized deal and printed the AAAs at Libor plus 151 bps.

Jefferies Finance tapped the U.S. market with a $409.5 million CLO transaction. The AAA-rated senior secured floating-rate tranche priced at Libor plus 155 bps.

In the European market, KKR Credit Advisors (Ireland) sold €516.8 million of notes. The AAAs priced at Euribor plus 135 bps.

CLO issuance has remained light over the past few months.

“Trailing 4-week volume has dropped to $1.5 [billion], and unless the trend changes it looks increasingly unlikely that our $100-110 [billion] FY forecast will be met,” J.P. Morgan Securities LLC analysts said in a market note. “CLO 2.0 AAA spreads are now flat on the year and AA and A have given up most of their gains.”

Octagon Credit Investors priced $820 million of notes due Oct. 20, 2026 in the Octagon Investment Partners 25, Ltd./Octagon Investment Partners 25, LLC transaction, according to a market source.

The CLO sold $496 million of class A senior secured floating-rate notes at Libor plus 146 bps in the senior tranche.

Morgan Stanley & Co. LLC was the placement agent.

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