CLO February issuance pushes tally ahead of year-ago period; deals ahead in pipeline

By Cristal Cody

Tupelo, Miss., Feb. 18 – While CLO issuance has been slow to ramp up in 2015, new deals in February helped push the year-to-date total ahead of the amount brought in the same period last year.

“For all the concerns, year-to-date U.S. CLO issuance is ahead of 2014 issuance at the same point, with $7 billion issuance since Jan. 28, 2015,” Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Jason McNeilis said in a note.

About $8 billion of CLOs have priced year to date, according to Prospect News data.

Earlier in the month, CreekSource LLC brought the $307 million Clear Creek CLO 2015-1 Ltd. offering and Ares Management LLC sold the $613 million Ares XXXIII CLO Ltd./Ares XXXIII CLO LLC deal.

Three euro-denominated deals have priced to date this year, including Pramerica Investment Management Ltd.’s €442.6 million Dryden 35 Euro CLO 2014 BV transaction.

Historically, CLO issuance increased strongly over the latter half of the 2013 and 2014 calendar years, according to Wells Fargo.

January 2014 issuance of about $2.5 billion was only about 2% of the year’s total primary volume, the analysts said.

Looking ahead, new U.S. and European CLO deals are in the pipeline, including an offering from CIFC Asset Management LLC, according to market sources.

New York City-based CIFC Asset Management plans to price $563,125,000 of notes due 2027 in the CIFC Funding 2015-I, Ltd./CIFC Funding 2015-I, LLC deal via BNP Paribas Securities Corp.

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