LCM raises $609.63 million; NYL prices; BlueMountain preps $506.7 million offering

By Cristal Cody

Tupelo, Miss., Feb. 20 – LCM Asset Management LLC and NYL Investors LLC tapped the CLO primary market, while another manager in the pipeline is expected to price in the week ahead, sources said on Friday.

“It’s much quieter compared to two or three weeks ago,” one source said. “It’s still difficult to get a deal done. It’s not as quick a process as it was a year ago. We’re definitely headed toward a year of much less issuance compared to last year.”

Total CLO issuance is forecast at $80 billion to $120 billion over the year.

LCM Asset Management sold $609.63 million of notes in the CLO deal and placed the AAA-rated tranche at Libor plus 151 basis points.

Also in the primary market, NYL Investors priced a $415 million CLO deal. The CLO brought the AAA notes at Libor plus 140 bps.

Looking ahead to the upcoming week, BlueMountain Capital Management LLC plans to price a $506.7 million CLO deal.

Also coming up, Invesco Senior Secured Management, Inc. is in the pipeline with the $515.5 million Betony CLO Ltd./Betony CLO LLC offering. Morgan Stanley & Co. LLC is the placement agent.

New CLO AAA notes have tightened about 5 bps over the month, while BBB notes are in about 25 bps, a market source said.

“They’re all tighter, except for double Bs,” the source said.

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