Octagon prices $705.5 million CLO; heavy supply forecast; Ares, Symphony, CSAM on tap

By Cristal Cody

Eureka Springs, Ark., Sept. 8 – Octagon Credit Investors, LLC priced a $705.5 million CLO deal on Thursday in the first supply of the week.

Octagon sold eight tranches of notes in the offering.

CLO primary action is expected to be strong in September.

“August was the second biggest month of the year of total issuance volume,” one source said on Thursday. “I would expect the most volume of the entire year this month. There’s a lot of deals in the pipeline.”

CLO managers including Ares Management LP, Symphony Asset Management LLC and Credit Suisse Asset Management, LLC are marketing new CLO deals.

Octagon Credit Investors priced $705.5 million of notes due Oct. 15, 2027 in the Octagon Investment Partners 28, Ltd./Octagon Investment Partners 28, LLC offering on Thursday, according to a market source.

The CLO sold $434 million of class A senior secured floating-rate notes (Aaa) at Libor plus 145 basis points at the top of the capital structure.

Morgan Stanley & Co. LLC was the bookrunner.

Octagon Credit Investors has priced two CLOs and refinanced one vintage 2013 CLO year to date.

The New York-based credit investment firm priced three CLO transactions in 2015.

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