Carlyle to offer new European CLO; 'several transactions' in January deal pipeline

By Cristal Cody

Tupelo, Miss., Jan. 9 - The collateralized loan obligation market remained quiet with issuance expected to resume in the weeks ahead, according to informed sources on Thursday.

"There are several transactions that are in some stage of marketing, and I would expect there to be other deals that will be priced prior to the end of the month," one source said.

About $12 billion of broadly syndicated CLO deals are in the pipeline, according to market sources.

The Carlyle Group LP plans to be in the primary market within the next few weeks with a new European CLO transaction, a source said.

"The deal size is still TBA, but it likely will be €350 to €400 [million]," the source said.

Details emerged for Carlson Capital, LP's $363 million Cathedral Lake CLO 2013 Ltd./Cathedral Lake CLO 2013 Corp. transaction. Carlson sold the AAA tranche at Libor plus 155 basis points.

U.S. AAA note spreads for the "first couple of prints" in 2014 remain a "big question for people," one market source said. "There just haven't been any data points this year."

AAA-rated CLO tranches are holding in the Libor plus 150 bps to 155 bps area, sources report.

Carlson raises $363 million

Carlson Capital priced $363 million of notes due Jan. 15, 2026 in the Cathedral Lake CLO 2013 transaction set to close on Friday, according to a market source.

The CLO priced $169.8 million of class A-1A senior secured floating-rate notes (/AAA/) at Libor plus 155 bps; $50 million of 3.624% A-1B senior secured fixed-rate notes (/AAA/); $40.25 million of class A-2 senior secured floating-rate notes (/AA/) at Libor plus 200 bps; $28 million of class B deferrable floating-rate notes (/A/) at Libor plus 285 bps; $20 million of class C deferrable floating-rate notes (/BBB/) at Libor plus 365 bps; $16.45 million of class D deferrable floating-rate notes (/BB/) at Libor plus 475 bps and $38.5 million of subordinated notes.

Goldman Sachs & Co. was the placement agent.

Carlson Capital will manage the CLO, which is backed primarily by broadly syndicated senior secured corporate loans.

Carlson Capital is a Dallas-based alternative asset management firm.

Carlyle to price European CLO

The Carlyle Group will price the Carlyle Global Market Strategies Euro CLO vehicle via Credit Suisse Securities (Europe) Ltd., according to an informed source.

CELF Advisors LLP, a member of the Carlyle Group, will manage the CLO.

Washington, D.C.-based Carlyle Group priced two European CLOs in 2013. The firm sold the €350 million Carlyle Global Market Strategies Euro CLO 2013-1 BV offering in June and the €335.9 million Carlyle Global Market Strategies Euro CLO 2013-2, Ltd. deal in September.

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