Madison Capital prices second middle-market CLO of year; middle market active, interest up

By Cristal Cody

Tupelo, Miss., June 20 – Madison Capital Funding LLC priced a $324.87 million middle-market CLO transaction in the firm’s second deal year to date.

The middle-market space has been active so far in 2017.

More than $7.3 billion of middle-market CLOs have priced year to date, compared to the $8.25 billion of deals brought in all of 2016, according to BofA Merrill Lynch.

Interest in middle-market CLOs is on the rise, according to a Moody’s Investors Service CLO note following an investors’ conference on CLOs and leveraged loans the previous week.

“The investor base for middle market CLOs is growing, including overseas, as investors turn their attention to higher yielding alternatives to broadly syndicated loan CLOs,” Moody’s said attendees reported.

MCF CLO sells $324.87 million

Madison Capital Funding priced $324.87 million of notes due July 20, 2030 in the CLO offering, according to an informed source.

MCF CLO VI LLC sold $188 million of class A floating-rate notes at a discount margin of Libor plus 172.5 basis points at the top of the capital structure.

Wells Fargo Securities, LLC and Guggenheim Securities LLC were the underwriters.

The deal is backed primarily by middle-market senior secured loans.

Madison Capital Funding is a Chicago-based middle-market finance company and subsidiary of New York Life Insurance Co.

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