Ares, Palmer Square, Triumph Capital, Vibrant price new CLOs; spreads leak wider

By Cristal Cody

Tupelo, Miss., July 13 – CLO managers including Ares Management LLC, Palmer Square Capital Management LLC, Triumph Capital Advisors, LLC and Vibrant Credit Partners, LLC priced new transactions.

Supply year to date and in July has been strong.

“Despite the midweek U.S. holiday last week, CLO supply has continued full steam ahead in July,” Wells Fargo Securities LLC analysts said in a note on Friday. “Month to date, we count 25 U.S. deals that have priced across new issue, refis, resets and reissues.”

So far, eight new issue CLOs totaling $3.7 billion have priced in July, bringing total new issue volume to $72 billion year to date, according to the note.

Wells Fargo Securities analysts forecast $150 billion of new issue CLO volume for 2018.

CLO spreads have leaked wider on the strong supply with U.S. AAA-A spreads 5 basis points to 10 bps weaker from a month ago and 15 bps to 30 bps wide of their February tights, according to the note.

CLO BBB and BB notes are 15 bps to 30 bps softer than a month ago and 50 bps to 60 bps wide of their tights in February, the analysts said.

Ares places XLIX CLO

Ares Management priced $511.6 million of notes due July 22, 2030 in the Ares XLIX CLO Ltd./Ares XLIX CLO LLC transaction, according to a market source.

The deal included $290 million of class A-1 floating-rate notes (AAA/AAA) that priced at Libor plus 107 bps.

Natixis Securities Americas LLC is the placement agent.

Ares Management has priced three new CLOs year to date.

The alternative asset management firm is based in Los Angeles.

Palmer Square prints CLO

Palmer Square Capital Management sold $508.35 million of notes due July 16, 2031 in the Palmer Square CLO 2018-2 Ltd./Palmer Square CLO 2018-2, LLC transaction, according to a market source.

The CLO placed $311 million of class A-1a floating-rate notes at Libor plus 110 bps at the top of the capital structure.

Credit Suisse Securities (USA) LLC was the placement agent.

Palmer Square Capital is an investment management firm based in Leawood, Kan.

Triumph sells $509.6 million

Triumph Capital Advisors closed Friday on a new $509.6 million CLO offering of notes due in July 2031, according to a market source.

Trinitas CLO VIII Ltd./Trinitas CLO VIII LLC priced $320 million of class A floating-rate notes at Libor plus 110 in the AAA-rated tranche.

Citigroup Global Markets Inc. was the placement agent.

Triumph Capital Advisors has priced one new CLO and refinanced one vintage CLO year to date.

The CLO manager and subsidiary of Dallas-based Triumph Bancorp, Inc. priced two new CLOs in 2017.

Vibrant brings IX notes

Vibrant Credit Partners priced $510 million of notes due July 2031 in the new CLO deal, according to a market source.

Vibrant CLO IX Ltd./Vibrant CLO IX LLC sold the $320 million of class A-1 senior secured floating-rate notes at Libor plus 110 bps in the senior tranche.

BNP Paribas Securities Corp. was the placement agent.

Vibrant Credit Partners has priced two CLOs year to date.

The CLO manager is an affiliate of New York-based money manager DFG Investment Advisors, Inc.

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