Och-Ziff, Brigade price euro CLOs; middle market deal action picks up; secondary spreads flat

By Cristal Cody

Tupelo, Miss., Aug. 7 – Deal action in the European CLO primary market is picking up in August, along with activity in the U.S. middle-market space.

Och-Ziff Europe Loan Management Ltd. priced a €415.25 million CLO in the firm’s first deal of the year and second euro-denominated CLO to date.

Brigade Capital Europe Management, LLP priced a new €368.2 million CLO.

More than €10 billion of euro-denominated CLOs have priced year to date, according to market sources.

In middle-market issuance, Tennenbaum Capital Partners LLC affiliate SVOE/MM LLC’s series I priced $350.85 million of notes in the TCP Whitney CLO, Ltd. transaction.

The deal is the first issuance in the middle-market primary space since June.

“Middle market CLO issuance has been historically strong year to date; however, issuance lagged somewhat in July as no MM CLOs priced,” according to a Wells Fargo Securities, LLC report.

Middle-market CLO volume year to date totals about $7.31 billion, compared to the $8.25 billion brought in all of 2016, according to BofA Merrill Lynch.

In the secondary market, CLO spreads ended the previous week flat across the capital structure with about $146 million of bonds appearing on BWIC lists, according to the note.

AAA-rated notes were steady at Libor plus 110 bps.

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