KKR, Oaktree price new issue CLOs; Ares refinances $465 million 2016 notes; spreads steady

By Cristal Cody

Tupelo, Miss., April 1 – Deal volume revved up in the week ahead of the end of the first quarter in the CLO primary market.

KKR Financial Advisors II, LLC priced an upsized $452 million of notes due April 15, 2032 in the KKR CLO 25 Ltd./KKR CLO 25 LLC transaction on Thursday, according to a market source.

The deal was upsized from $406.3 million. Final pricing details were not immediately available.

GreensLedge Capital Markets LLC was the placement agent.

The transaction is expected to close May 14.

Oaktree Capital Management LP also brought an upsized $744.78 million of notes due April 22, 2030 in a new CLO offering via Wells Fargo Securities, LLC on Wednesday, according to a market source.

The Oaktree CLO 2019-1 Ltd./Oaktree CLO 2019-1 LLC deal was upsized from $732.2 million.

The transaction is expected to close April 25.

In other primary action, Ares Management LLC priced $465 million of notes in a refinancing and reset of a vintage 2016 CLO.

Deal volume totaled $4.5 billion in the primary market over the last week of March, in the “biggest” deal volume week seen since February 2018, according to a BofA Merrill Lynch research note released on Monday.

CLO primary spreads remain mostly steady with AAA spreads ending March about 2 basis points wider from a month ago, the note said.

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