Cerberus prices $432.1 million middle-market CLO; Sculptor refinances; secondary active

By Cristal Cody

Tupelo, Miss., Oct. 1 – Cerberus Capital Management, LP priced $432.1 million of notes in the manager’s first middle-market CLO offering of the year.

Meanwhile, Sculptor Loan Management LP priced $20 million of notes in two parts in a refinancing of a fixed-rate tranche from a 2017 broadly syndicated CLO transaction.

About $6 billion of middle-market CLOs have priced year to date.

Primary action picked up in September with more than $11 billion of issuance following a light August, while year-to-date supply is down about 33%, according to a Wells Fargo Securities, LLC note on Thursday.

“September U.S. CLO primary volume was the most active month since April 2019,” Wells Fargo Securities analysts said in the report. “September was a marked change from August, which posted the lowest monthly volume figure since January 2017 (excluding March/April 2020).”

Meanwhile, the securitized secondary market saw lighter trading volume over the month.

“September posted the lowest monthly CLO secondary volume of the year, at $11.9 billion,” the Wells Fargo analysts said. “However, in an indication of how much secondary activity has increased this year, September’s secondary volume was higher than any single month from 2015 to 2019.”

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