CLO issuance picks up; Ares, Rockford, Onex price; BlackRock refinances; CLO spreads flat

By Cristal Cody

Tupelo, Miss., April 10 – The CLO primary market saw a pickup in volume with several issuers pricing new deals in the past week.

Ares CLO Management LLC led the pricing action with a new $817.6 million CLO.

Rockford Tower Capital Management, LLC priced $507 million of notes in an offering.

NYL Investors LLC came with a $408 million CLO.

Crestline Denali Capital, LP priced $409.44 million of notes in its deal.

Europe also saw a new CLO in the primary market. Onex Credit Partners, LLC priced €360.75 million of notes in the euro-denominated transaction.

Looking at refinancing action, BlackRock Financial Management, Inc. refinanced $476.75 million of notes from a 2014 CLO.

Refinancing volume continues to outpace new supply year to date.

New U.S. CLO issuance totals nearly $20 billion, compared to almost $59 billion of refinancing and repricing volume, according to a J.P. Morgan Securities LLC note released on Monday.

Euro-denominated CLO issuance totals €9.75 billion, which incudes €3.19 billion of new deals and €6.57 billion of refinancings and repricings.

“There is the risk of softness on surging refi/reset supply, but it is helpful to remember that with little actual new CLO creation the underlying technical is supportive,” JPMorgan analysts said in the note.

CLO secondary market activity was light over the past week with spreads ending Friday flat, according to a BofA Merrill Lynch note released on Monday.

BWIC volumes hit slightly more than $200 million.

“The market moved sideways alongside the broader market as market participants assessed the hawkish tone of the Fed minutes and potential delays in getting tax reform passed,” the BofA Merrill Lynch analysts said.

U.S. CLO 2.0/3.0 spreads ended the week unchanged across the capital stack.

AAA-rated CLO spreads were flat at Libor plus 115 basis points.

Ares prices $817.6 million

Ares CLO Management priced $817.6 million of notes due Oct. 15, 2029 in the Ares XLIII CLO Ltd./Ares XLIII CLO LLC transaction, according to a market source.

The CLO sold $520 million of class A senior floating-rate notes at Libor plus 122 bps in the AAA-rated tranche.

BNP Paribas Securities Corp. was the placement agent.

Ares Management has priced one new CLO and refinanced two vintage CLOs year to date.

The CLO manager priced two new CLOs and refinanced two vintage CLOs in 2016.

The alternative asset management firm is based in Los Angeles.

Rockford Tower brings CLO

Rockford Tower Capital Management priced $507 million of notes due April 15, 2029 in a new broadly syndicated CLO transaction, a market source said.

Rockford Tower CLO 2017-1, Ltd./Rockford Tower CLO 2017-1, LLC sold $319.8 million of class A floating-rate notes at Libor plus 137 bps in the senior tranche.

J.P. Morgan Securities LLC arranged the offering.

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

Proceeds will be used to purchase a $500 million portfolio of mostly first-lien senior secured leveraged loans.

Rockford Tower Capital Management is a Delaware limited liability company.

NYL Investors taps market

NYL Investors sold $408 million of notes due April 15, 2030 in the Flatiron CLO 17 Ltd./Flatiron CLO 17 LLC transaction, according to a market source.

The CLO priced $256 million of class A senior secured floating-rate notes at par to yield Libor plus 125 bps at the top of the capital structure.

Barclays arranged the offering.

The deal is backed mostly by broadly syndicated first-lien senior secured corporate loans.

Proceeds will be used to purchase a $400 million portfolio of mostly senior secured leveraged loans.

NYL Investors is a New York-based subsidiary of mutual life insurance company New York Life Insurance Co.

Crestline Denali prices CLO

Crestline Denali Capital priced $409.44 million of notes due May 10, 2030 in the Crestline Denali CLO XV, Ltd./Crestline Denali CLO XV LLC offering, according to a market source.

Crestline Denali CLO XV sold $254 million of senior secured floating-rate notes at Libor plus 130 bps in the class A tranche.

Natixis Securities Americas, LLC was the placement agent.

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

Proceeds will be used to purchase a portfolio of about $400 million of mostly first-lien senior secured leveraged loans.

Crestline Denali priced two CLO deals in 2016.

The asset management firm is based in Oak Brook, Ill.

Onex prices €360.75 million

Onex Credit Partners priced €360.75 million of notes due June 18, 2030 in the euro-denominated CLO offering, according to a market source.

OCP Euro CLO 2017-1 DAC placed €202.25 million of class A senior secured floating-rate notes at Euribor plus 90 bps in the AAA-rated tranche.

BofA Merrill Lynch was the placement agent.

The deal is backed primarily by broadly syndicated senior secured loans and senior secured bonds.

Onex Credit Partners is a private equity firm based in Toronto.

BlackRock refinances CLO

BlackRock Financial Management refinanced $476.75 million of 10-year notes in the vintage 2014 CLO deal, according to a market source and a notice of revised supplemental indenture on Friday.

Magnetite XI, Ltd./Magnetite XI LLC priced $349.25 million of class A-1-R senior secured floating-rate notes at par to yield Libor plus 112 bps at the top of the capital stack.

Credit Suisse Securities (USA) LLC arranged the refinancing.

Proceeds from the refinancing will be used to redeem the original class A-1, A-2, B and C notes on April 18.

BlackRock priced two new CLOs and refinanced two vintage CLOs in 2016.

The investment management firm is based in New York City.

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