Owl Rock prices $430.2 million CLO; volume thin; secondary interest climbs

By Cristal Cody

Tupelo, Miss., May 21 – Owl Rock Capital Advisors LLC priced a $430.2 million middle-market CLO offering in the manager’s third CLO of the year and the first middle-market deal priced since the coronavirus pandemic was declared in March.

“Only one MM CLO deal has priced since early March,” Wells Fargo Securities LLC analysts said in a research note on Thursday.

Year to date, just four middle-market CLOs totaling $1.7 billion have priced, compared to volume of 11 deals totaling $5.2 billion in the same period in 2019, according to the report.

Meanwhile, secondary volume rose to $578.13 million for high-grade CBO/CDO/CLO issues from $500.95 million on Tuesday and $484.92 million on Monday.

Trading volume climbed to $276.74 million for lower-rated securities from $179.05 million on Tuesday and $74.34 million at the start of the week.

Prices were mixed.

In its deal, Owl Rock Capital Advisors priced $430.2 million of notes due May 20, 2029 in the middle-market offering, according to market sources.

Owl Rock CLO IV, Ltd./Owl Rock CLO IV, LLC sold $236.5 million of class A-1 floating-rate notes at Libor plus 262 basis points at the top of the three-tranche deal.

Natixis Securities Americas LLC was the placement agent.

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