AXA Investment sells €373.45 million CLO; steady euro supply eyed; secondary pace thins

By Cristal Cody

Tupelo, Miss., Oct. 10 – AXA Investment Managers, Inc. priced €373.45 million of notes at par in the manager’s first European CLO brought to the primary market this year.

Euro-denominated deal volume is expected to continue to ramp up in October with a handful of new issues and refinancings of vintage CLOs expected, a market source said.

More than €22 billion of European CLOs have priced year to date.

Elsewhere, secondary trading volume has been thin in tranches lower down the capital stack with prices softening over the week.

On Wednesday, $261.22 million of high-grade CBO/CDO/CLO issues and $40.81 million of non-investment-grade securities traded in the securitized secondary market, Trace data shows.

Secondary volume at the start of the week included $290.33 million of high-grade CBO/CDO/CLO issues and $111.43 million of non-investment-grade securities.

In its deal, AXA Investment Managers priced €373.45 million of notes at par in the new offering, according to a market source.

Adagio VIII CLO DAC sold €217 million of class A senior secured floating-rate notes at Euribor plus 93 basis points at the top of the capital structure.

Barclays was the placement agent.

The CLO is backed primarily by broadly syndicated senior secured obligations.

AXA Investment Managers is a subsidiary of Paris-based AXA Group.

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