February CLO deal volume quiet; some primary action in works over month; spreads weak

By Cristal Cody

Tupelo, Miss., Feb. 9 – CLO deal volume continues to remain quiet to date in February, but market sources still project as much as $80 billion of U.S. issuance for the year.

CLO managers have priced $826 million of U.S. broadly syndicated CLOs in two transactions and €414 million of euro-denominated notes in one CLO deal year to date, according to Prospect News data.

Some CLO deals are expected to price in February, but issuance is expected to remain thin over the month amid market volatility.

CreekSource LLC is on the calendar with the $300 million Mill Creek CLO II, Ltd./Mill Creek CLO II LLC transaction via Goldman Sachs & Co.

Prudential Investment Management, Inc. plans to price $507.75 million of notes in the Dryden 42 Senior Loan Fund/Dryden 42 Senior Loan Fund LLC deal via BNP Paribas Securities Corp.

CLO secondary spreads remain weak with BB-rated notes 50 basis points wider since the end of January and B notes 100 bps wider since the end of the month, a market source said.

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