Redding Ridge Asset Management prices $388.3 million; CLO spreads tighten across stack

By Cristal Cody

Tupelo, Miss., Aug. 3 – In new CLO pricing action, Redding Ridge Asset Management, LLC tapped the market with a $388.3 million broadly syndicated CLO offering.

The deal is the manager’s fourth new dollar-denominated CLO offering of the year.

About $42 billion of dollar-denominated CLOs and about €10 billion of euro-denominated CLOs have priced year to date, according to market sources.

Looking at the secondary market, investment-grade CLO spreads continued to tighten over the past week, BofA Securities, Inc. analysts said in a research note released on Monday.

CLO AAA-rated spreads firmed 10 basis points over the week to a Libor plus 150 bps average, according to the note.

BB tranches firmed 25 bps on the week to an average Libor plus 1,100 bps.

Redding Ridge Asset Management priced $388.3 million of notes due Oct. 15, 2031 in the CLO offering, according to market sources.

RR 11 Ltd./RR 11 LLC sold $240 million of class A-1 senior secured floating-rate notes (Aaa/AAA) at Libor plus 160 bps at the top of the capital stack.

BNP Paribas Securities Corp. was the placement agent.

The New York City-based asset management company was established in 2016 by Apollo Global Management, LLC.

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