GoldenTree prices $710.65 million CLO; PineBridge brings new, refinanced CLOs; spreads firm

By Cristal Cody

Tupelo, Miss., March 13 – New CLO deal action is picking up in March, while the refinancing pace continues to remain strong, according to market sources on Monday.

GoldenTree Loan Management LP brought a new $710.65 million CLO deal to the market.

PineBridge Investments LLC member company PineBridge Galaxy LLC priced $409 million of notes in a new CLO.

PineBridge Investments also refinanced priced $332 million of notes in a CLO dating from 2013.

Year to date, U.S. CLO volume totals more than $51 billion, including about $14 billion of new issuance and about $32 billion of refinancings, sources report.

“The pace of U.S. CLO refinancings continues to stay steady, averaging 7 deals for $3.1 [billion] weekly in 2017,” according to a J.P. Morgan Securities LLC analysts’ note.

J.P. Morgan Securities analysts forecast AAA spreads to get as tight as Libor plus 110 basis points by the end of the year.

CLO 3.0 AAA spreads ended Friday 2 bps tighter on the week at Libor plus 122 bps.

New issue AAAs are pricing 20 bps tighter in 2017 at Libor plus 122 bps-138 bps area, according to J.P. Morgan. New CLO B-rated tranches have come in 228 bps year to date to price at the Libor plus 745 bps-1000 bps area.

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