Redding Ridge prices $522 million notes in latest CLO; U.S. CLO AAA spreads range-bound

By Cristal Cody

Tupelo, Miss., Jan. 8 – Redding Ridge Asset Management, LLC priced $522 million of notes in a new CLO offering just ahead of the Christmas Day holiday.

The deal is expected to close later in January.

Redding Ridge Asset Management priced two new dollar-denominated CLOs in 2019, following two new deals in 2018.

CLO issuers priced about $116 billion of new broadly syndicated deals in 2019, market sources report.

U.S. CLO issuance “set a new record for issuance in 2019 – by deal count, and by manager count,” according to a Wells Fargo Securities, LLC research note on Wednesday.

“With 115 managers issuing a CLO, 2019 marked a record year for the number of managers issuing in one year,” according to the report. “The prior record of 111 managers was set in 2018.”

CLO AAA spreads traded within a narrow range of 6 basis points during 2019, despite significant tightening in competing assets, the report said.

Redding Ridge Asset Management priced $522 million of notes due Jan. 15, 2033 in the broadly syndicated CLO transaction, according to market sources.

RR 7 Ltd./RR 7 LLC priced the $320 million of class A-1a floating-rate notes at Libor plus 135 bps.

BofA Securities, Inc. was the placement agent.

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