CLO pipeline fills; Octagon offers $605 million; Crestline Denali markets $360.5 million

By Cristal Cody

Eureka Springs, Ark., Aug. 31 – Two CLO managers plan to return to the primary market soon to price new deals.

Octagon Credit Investors, LLC is in the deal pipeline with $605 million of notes in the firm’s third CLO transaction of 2016.

Crestline Denali Capital, LP is offering $360,575,000 of notes in its second CLO deal of the year.

Year to date, nearly $40 billion of CLOs have priced in the U.S. dollar-denominated primary market, according to Prospect News data.

In its deal, Octagon Credit Investors plans to price $605 million of notes due 2027 in the deal via Morgan Stanley & Co. LLC, according to a market source.

The Octagon Investment Partners 28, Ltd./Octagon Investment Partners 28, LLC deal includes $372 million of class A senior secured floating-rate notes (Aaa); $66 million of class B-1 senior secured floating-rate notes (Aa1); $18 million of class B-2 senior secured fixed-rate notes (Aa1); $42 million of class C secured deferrable mezzanine floating-rate notes (A2); $30 million of class D secured deferrable mezzanine floating-rate notes (Baa3); $12 million of class E-1 secured deferrable junior floating-rate notes (Ba3); $12 million of class E-2 secured deferrable junior floating-rate notes (Ba3) and $53 million of subordinated notes.

The deal has a two-year non-call period and a five-year reinvestment period.

The CLO is backed primarily by broadly syndicated first-lien senior secured loans.

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