Redding Ridge prices $505.1 million RR 5 CLO notes; high-grade secondary market active

By Cristal Cody

Tupelo, Miss., Sept. 20 – Redding Ridge Asset Management, LLC priced a $505.1 million CLO offering in the manager’s second new deal of the year.

Nearly $80 billion of new issue CLOs have priced year to date, according to market sources.

In the secondary market, high-grade securitized trading has been active this week, according to Trace data.

On Wednesday, $130.75 million of high-grade CBO/CDO/CLO issues and $77.15 million of below-investment-grade securities were traded, up from $93.4 million of investment-grade trading volume and $36.2 million of non-high-grade secondary market volume on Tuesday.

On Monday, $105.7 million of high-grade CBO/CDO/CLO securities and $54.05 million of lower-rated issues were traded.

In its deal, Redding Ridge Asset Management priced $505.1 million of notes due Oct. 15, 2031 in the new broadly syndicated CLO transaction, according to a market source.

RR 5 Ltd./RR 5 LLC priced $300 million of class A-1 floating-rate notes (AAA) at Libor plus 112 basis points at the top of the capital structure.

J.P. Morgan Securities LLC was the placement agent.

The notes are collateralized primarily by broadly syndicated first-lien senior secured loans.

Redding Ridge Asset Management has priced two new CLOs year to date.

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

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