| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Redding Ridge Asset Management, LLC > News item |
Redding Ridge offers $505.1 million, manager’s second CLO of year; demand tops supply
By Cristal Cody
Tupelo, Miss., Sept. 11 – CLO primary action is picking back up with several deals expected to price in September.
Redding Ridge Asset Management, LLC is returning to the primary market for the second time this year with a new CLO deal. The company created in 2016 plans to price $505.1 million of notes in the offering.
CLO primary action thinned in August but “gathered steam” by the end of the month, according to a BofA Merrill Lynch research report on Tuesday.
Combining coupons of $1.3 billion and retail flows of $191 million to CLO volume, the “gross demand stood at $6.1 [billion] for the week,” according to the note. “The net issuance for the week ending 17th August was recorded at $970 [million] however, there was no activity in the new issue market for two weeks, post that date.”
While more than $90 billion of new CLOs have priced year to date, demand has outweighed supply by $427 million as of the week ended Aug. 31, the note said.
Redding Ridge plans RR 5
Redding Ridge Asset Management plans to price $505.1 million of notes due Oct. 15, 2031 in the transaction, according to a market source.
The RR 5 Ltd./RR 5 LLC deal includes $4.6 million of class X floating-rate notes (AAA/); $300 million of class A-1 floating-rate notes (AAA/); $52.5 million of class A-2 floating-rate notes (AA/); $54.5 million of class B deferrable floating-rate notes (A/); $32 million of class C deferrable floating-rate notes (BBB-/); $18.5 million of class D deferrable floating-rate notes (BB-/); and $43 million of subordinated notes.
J.P. Morgan Securities LLC is the placement agent.
The deal is expected to close on Oct. 18.
Redding Ridge Asset Management has priced one new CLO year to date.
In 2017, the CLO manager priced two CLOs and refinanced one vintage CLO.
The New York City-based asset management company was established in 2016 by Apollo Global Management, LLC.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.