Onex, Regatta tap U.S. CLO market; PGIM prices €471.18 million CLO; spreads stable

By Cristal Cody

Eureka Springs, Ark., Sept. 26 – CLO issuance remains strong in September, while spreads are mostly unchanged in the secondary market, according to sources on Monday.

Details emerged on new CLO deals from Credit Suisse Asset Management, LLC, Onex Credit Partners, LLC, Regatta Loan Management LLC and PGIM Ltd.

Credit Suisse Asset Management sold $808.98 million of notes in the firm’s third CLO deal year to date.

Onex Credit Partners priced a $557.75 million CLO offering.

Regatta Loan Management LLC brought a $407.05 million deal to market.

PGIM priced €471.18 million notes in a European CLO transaction.

September CLO volume is $7.1 billion, 26% of which includes U.S. CLO refinancings, according to a J.P. Morgan Securities LLC note.

“So far this year there have been 17 CLO refinancings and resets,” JPMorgan analysts said in the note. “With spreads near post-crisis tights and looming risk retention in December, we expect CLO refinancing activity to remain elevated through to the end of the year.”

Primary and secondary activity was mostly light over the previous week with market participants at an industry conference.

In the U.S. secondary market, BWIC volume was about $210 million for the previous week, according to a BofA Merrill Lynch report.

CLO spreads were mostly unchanged across the capital stack with AAAs trading in the Libor plus 140 basis points area, the note said.

In the European CLO secondary market, AAAs were flat in the Euribor plus 125 bps area.

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