Octagon brings $506.5 million CLO in seven tranches; Zais prices $400 million notes

Chicago, Aug. 26 – Two experienced firms priced new dollar-denominated CLOs on Monday.

Octagon Credit Investors, LLC brought $506.05 million to market in a deal that is expected to settle in September.

And, Zais Group, LLC priced a $400 million 12-part offering due 2032.

In the secondary market, Friday’s session included $169.54 million of investment-grade securities and $34.86 million of non-high-grade securities, lighter than Thursday’s volume.

The investment-grade securities had an average trading price of 99, in line with prices earlier in the week.

The non-high-grade average price was 54.8. The top five non-investment grade trades were listed as averaging 94.9, but the bottom five trades had an average price of 30.1. The weighted average was 62.3.

The London market was closed for the summer bank holiday on Monday, making the European market quiet for CLOs.

In its deal, Octagon Investment Partners 43, Ltd./Octagon Investment Partners 43, LLC priced $506.05 million in a seven-part cash flow CLO.

Meanwhile, Zais Group priced its $400 million collateralized loan obligation offering in 12 parts.

The average credit quality of the portfolio is B+/B, in line with other recent CLOs, according to Fitch Ratings.

The weighted average recovery assumption for Zais’ deal is 80.3%, according to Fitch.

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