Octagon prices $611 million CLO in manager’s fifth deal of year; secondary improves

By Cristal Cody

Tupelo, Miss., Oct. 19 – Octagon Credit Investors, LLC priced $611 million of notes in the firm’s fifth new offering of the year.

About $90 billion of new CLOs have priced year to date, according to market sources.

Total new issue deal volume for the year is expected to climb to about $120 billion.

Meanwhile, the securitized secondary market remained active this week.

On Thursday, $87.37 million of high-grade CBO/CDO/CLO issues and $158.14 million of lower-rated issues were traded, according to Trace data.

The investment-grade issues had a weighted average price of 99.70 in secondary trading, while the non-high-grade securities traded with a weighted average price of 92.90.

On Tuesday, high-grade CBO/CDO/CLO securities were traded with a weighted average price of 95.10. The non-investment-grade issues had a weighted average price of 88.10 on Tuesday, according to the data.

Octagon prices 39 CLO

Octagon Credit Investors sold $611 million of notes due October 2030 in the Octagon Investment Partners 39, Ltd./Octagon Investment Partners 39, LLC transaction, according to market sources.

The CLO had a weighted average discount margin of Libor plus 116 basis points for the AAA-rated tranches.

Goldman Sachs & Co. LLC was the placement agent.

Octagon Credit Investors has priced five new CLOs year to date.

In 2017, the CLO manager sold four new CLOs.

The New York-based credit investment firm is a subsidiary of Conning & Co.

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