Redding Ridge prices €391.8 million CLO; ratings downgrades continue; loan outflows dip

By Cristal Cody

Tupelo, Miss., July 31 – In new CLO primary market action, Redding Ridge Asset Management (UK) LLP priced a €398.1 million broadly syndicated CLO in the manager’s second euro-denominated deal this 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.

Deal volume in July included new dollar- and euro-denominated issuance, as well as the first CLO refinancing transaction priced since March.

Elsewhere, the market was absorbing additional ratings downgrades on CLOs this week.

Fitch announced ratings actions on several euro-denominated CLOs on Friday.

S&P Global Ratings said in a credit update report on Friday that on July 24 and July 29, the agency downgraded 63 additional CLO tranches by 1.2 notches on average.

Elsewhere, leverage loan funds saw a seventh consecutive week of outflows with $211 million of redemptions over the past week ended Wednesday, down from $221 million in the prior week, Fitch said.

Meanwhile, the securitized secondary market remained active over the week in high-grade and non-investment-grade CBO/CDO/CLO notes, according to Trace data.

On Thursday, $266.04 million of high-grade paper and $231.56 million of lower-rated issues were traded.

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