Slow CLO supply eyed amid volatility; Neuberger Berman, CIFC, MidCap refinance notes

By Cristal Cody

Tupelo, Miss., March 6 – The CLO primary and refinancing markets stayed active over the week despite coronavirus-related volatility that hampered financial markets.

“U.S. CLO issuance has slowed slightly, but this week, CLO managers still priced a standard CLO, a middle market CLO, a static CLO, a CBO, and a refi,” Wells Fargo Securities, LLC analysts said in a research note on Friday.

CLO spreads widened across the capital structure with AAAs an estimated 10 basis points wider on the week at the low Libor plus 130 bps area, according to the report.

Broadly syndicated A-rated tranches have widened about 60 bps to the Libor plus 260 bps area, while BBB spreads have eased 75 bps to the Libor plus 375 bps area and BB tranches have moved out 100 bps to the Libor plus 725 bps area.

Refinanced CLO AAA tranches also have widened about 10 bps to the Libor plus 110 bps area.

In pricing action, Neuberger Berman Loan Advisers LLC sold $437.75 million of notes in a refinancing of a 2017 broadly syndicated CLO.

CIFC Asset Management LLC priced $391 million of notes in a second refinancing of a 2015 broadly syndicated CLO.

In addition, MidCap Financial Services Capital Management LLC sold $467.47 million of notes in a refinancing of a 2017 middle-market CLO.

© 2015 Prospect News.
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