Teachers Advisors plans debut CLO; spreads mostly firm across stack in secondary

By Cristal Cody

Eureka Springs, Ark., June 3 – Upcoming CLO issuance is expected to include a debut deal from Teachers Advisors Inc.

Teachers Advisors plans to price a $455,545,000 CLO offering.

In the secondary market, CLO spreads are tighter month over month, except for BB-rated tranches, Wells Fargo Securities LLC analysts said in a report on Friday.

AAA-rated tranches traded about 3 basis points tighter on the month at Libor plus 152 bps.

BBB spreads improved 30 bps month over month to Libor plus 465 bps.

BB spreads were quoted 25 bps wider from a month ago at Libor plus 850 bps.

“Benchmark primary spreads have continued to tighten down the stack during May; the basis between primary and secondary has declined,” the analysts said.

Teachers Advisors on tap

Teachers Advisors plans to price $455,545,000 of notes due July 20, 2028 in the broadly syndicated CLO deal, according to a market source.

The TIAA CLO I Ltd./TIAA CLO I LLC transaction includes $292.5 million of class A floating-rate notes (/AAA/); $47.25 million of class B floating-rate notes (/AA/); $31.5 million of class C deferrable floating-rate notes (/A/); $22.5 million of class D deferrable floating-rate notes (/BBB/); $10 million of class E-1 deferrable floating-rate notes (/BB-/); $10.25 million of class E-2 deferrable floating-rate notes (/BB-/) and $41,545,000 of subordinated notes.

Wells Fargo Securities, LLC is the placement agent.

Teachers Advisors is an affiliate of New York-based TIAA Global Asset Management, which is part of the Teachers Insurance and Annuity Association of America.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.