Octagon sells new CLO; KVK CLO prices; Carlyle active in primary, refinancing markets

By Cristal Cody

Tupelo, Miss., May 11 – Octagon Credit Investors, LLC and Kramer Van Kirk Credit Strategies LP are among CLO managers that have priced new deals in 2015, according to market sources.

Octagon Credit Investors priced a $758.9 million CLO transaction.

Kramer Van Kirk Credit Strategies brought $612 million of notes.

Details also emerged on CLO transactions from Carlyle Investment Management LLC, which priced a $610.3 million deal and refinanced $429.1 million of notes in a vintage 2012 CLO.

Octagon brings CLO

Octagon Credit Investors priced a $758.9 million CLO transaction, a source said.

Octagon Investment Partners XXIV, Ltd. sold $484.4 million of class A-1 floating-rate notes at Libor plus 145 basis points at the top of the capital structure.

Citigroup Global Markets Inc. was the placement agent.

Octagon Credit Investors will manage the CLO.

The New York-based affiliate of CCMP Capital Advisors, LLC brought four CLO transactions in 2014.

Kramer Van Kirk taps market

Kramer Van Kirk Credit Strategies sold $612 million of notes in a CLO offering, a market source said.

KVK CLO 2015-1 Ltd. priced $387 million of class A floating-rate notes at Libor plus 158 bps in the senior tranche.

Goldman Sachs & Co. arranged the deal.

Kramer Van Kirk Credit Strategies will manage the CLO.

The Chicago-based credit asset management firm priced three CLO deals in 2014.

Carlyle prices CLOs

Carlyle Investment Management brought $610.3 million of notes due April 27, 2027 in a CLO transaction, according to a market source.

Carlyle Global Market Strategies CLO 2015-2, Ltd./Carlyle Global Market Strategies CLO 2015-2 LLC priced $384 million of class A-1 senior secured floating-rate notes at Libor plus 147 bps in the AAA-rated tranche.

Citigroup Global Markets Inc. was the placement agent.

Carlyle Investment Management is the CLO manager.

The deal is backed primarily by first-lien senior secured corporate loans.

Proceeds from the offering will be used to purchase a portfolio of about $600 million of mainly senior secured leveraged loans.

Carlyle Investment Management also refinanced $429.1 million of notes due April 20, 2022 at par in the vintage Carlyle Global Market Strategies CLO 2012-1, Ltd./Carlyle Global Market Strategies CLO 2012-1 LLC transaction, a source said.

The CLO priced the $320 million tranche of class A-R floating-rate notes at Libor plus 123 bps, tighter than where the notes originally priced at Libor plus 143 bps.

Morgan Stanley & Co. LLC was the refinancing agent.

Carlyle Investment Management is the CLO manager.

The CLO is backed primarily by first-lien senior secured corporate loans.

Proceeds from the offering were used to redeem the original notes.

Carlyle Investment Management has priced two new U.S. CLO deals year to date.

The asset management firm is an affiliate of Washington, D.C.-based Carlyle Group.

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