Europe, U.S. primary markets busy; BlueMountain preps CLO; secondary spreads ‘stabilized’

By Cristal Cody

Tupelo, Miss., Dec. 4 – December is starting off with steady CLO primary action in the U.S. and European primary markets, according to sources on Friday.

CELF Advisors LLP was expected to price a €517 million CLO deal via Morgan Stanley & Co. LLC.

The Carlyle Global Market Strategies Euro CLO 2015-3 D.A.C. offering includes €285 million of class A-1 senior secured floating-rate notes (Aaa/AAA); €75.6 million of class A-2 senior secured floating-rate notes (Aa2/AA); €33 million of class B senior secured deferrable floating-rate notes (A2/A); €20.6 million of class C senior secured deferrable floating-rate notes (Baa2/BBB); €31.2 million of class D senior secured deferrable floating-rate notes (Ba2/BB); €15.7 million of class E senior secured deferrable floating-rate notes (B2/B-) and €55.1 million of subordinated notes.

On Wednesday, Blackstone/GSO Debt Funds Management Europe Ltd. priced the €414 million Tymon Park CLO Ltd. transaction.

Coming up in the U.S. primary market, BlueMountain Capital Management LLC is in the deal pipeline with a $505.75 million CLO.

“Despite intra-year turbulence, the market has issued a robust $90 [billion],” Barclays Bank plc analysts said in a report on Friday. “Secondary levels have remained wide of the mid-year tights but are mostly at similar or tighter levels than year-end 2014. Spreads have stabilized in recent weeks, spurring a pick-up in buyer interest.”

BlueMountain offers CLO

BlueMountain Capital Management is offering $505.75 million of notes due Jan. 20, 2027 in its fourth CLO offering of the year, according to a market source.

The BlueMountain CLO 2015-4 Ltd./BlueMountain CLO 2015-4 LLC deal includes $310 million of class A floating-rate notes (Aaa/AAA); $67.5 million of class B floating-rate notes (/AA); $35 million of class C deferrable floating-rate notes (/A); $15 million of class D-1 deferrable floating-rate notes (/BBB); $7.5 million of class D-2 deferrable floating-rate notes (/BBB); $25 million of class E deferrable floating-rate notes (/BB); $10 million of class F deferrable floating-rate notes (/B) and $35.75 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

BlueMountain Capital Management has priced three CLO transactions year to date.

The New York City-based management firm brought four CLO deals in 2014.

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