Middle Market Credit Fund prices $399.9 million CLO deal; secondary market active

By Cristal Cody

Tupelo, Miss., Dec. 15 – Middle Market Credit Fund LLC priced a $399.9 million debut static middle-market CLO.

Middle-market CLO issuance has been stronger year to date with more than $12 billion of volume, more than double the $6 billion of deals priced in 2016, sources report.

In the broadly syndicated CLO market, about $100 billion of new CLOs have priced in 2017.

Elsewhere, securitized secondary trading has been active over the week.

Trading volume on Thursday included $76.86 million of high-grade CBO/CDO/CLO issues and $273.55 million of non-high-grade CBO/CDO/CLO securities, according to Trace.

On Wednesday, $118.33 million of investment-grade securitized issues and $80.97 million of lower-rated CBO/CDO/CLO securities were traded.

In its deal, Middle Market Credit Fund priced $399.9 million of notes due Jan. 15, 2028 in the CLO offering, a source said.

MMCF CLO 2017-1 LLC priced the $231.7 million tranche of class A-1 floating-rate notes at a discount margin of Libor plus 117 basis points.

Citigroup Global Markets Inc. was the placement agent.

Middle Market Credit Fund will manage the CLO.

The CLO manager is a joint venture formed between TCG BDC, formerly known as Carlyle GMS Finance, and Credit Partners USA LLC, a subsidiary of PSP Investment Holding US LLC, which is an investment manager of Canada’s Public Sector Pension Investment Board.

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