CLO volume strong, more than $35 billion priced year to date; deals in April pipeline

By Cristal Cody

Tupelo, Miss., April 2 – CLO volume ended the short market week with more than $35 billion of U.S. dollar- and euro-denominated CLOs priced year to date, according to sources and market data compiled by Prospect News.

New CLOs priced over the week include Trimaran Advisors, LLC’s $463.8 million Catamaran CLO 2015-1 Ltd./Catamaran CLO 2015-1 LLC deal via placement agent Barclays.

The Catamaran CLO sold $283.5 million of class A floating-rate notes at Libor plus 155 basis points in the senior slice.

Deal pipeline

Coming up in the pipeline, CLO managers including Onex Credit Partners, LLC are expected to bring deals. Onex Credit Partners plans to price $510 million of notes in the OCP CLO 2015-8 Ltd./OCP CLO 2015-8 Corp. offering. BofA Merrill Lynch is the placement agent.

Volume is forecast to dip in the second quarter based on a tight loan supply and risk retention regulations that require CLO managers to retain a 5% stake in deals, according to market sources.

Analysts forecast as much as $110 billion of CLO issuance in 2015.

More than $30 billion of U.S. dollar-denominated CLOs have priced in 2015, while about €3.5 billion of euro-denominated CLOs have priced year to date, according to Prospect News data.

© 2015 Prospect News.
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