ICG, Spire tap Europe; Rothschild, Octagon, Steele Creek price CLOs; BB, B spreads soft

By Cristal Cody

Eureka Springs, Ark., May 31 – May is ending on a strong note with new CLO issuance priced in the U.S. and European primary markets, according to sources on Tuesday.

Intermediate Capital Managers Ltd. tapped the European market with a new €412.8 million deal, its first CLO offering since 2014.

Spire Partners LLP returned to the euro-denominated market for the second time this year with a €359.7 million transaction.

In the U.S. primary market, details emerged on new deals from CLO managers Rothschild North America Inc., Octagon Credit Investors, LLC and Steele Creek Investment Management LLC.

Rothschild North America raised $305.5 million in an offering, its first CLO transaction since acquiring CLO manager West Gate Horizons Advisors, LLC in 2015.

Octagon Credit Investors sold $510.4 million of notes in its second CLO deal of the year.

Steele Creek Investment Management brought a $306.5 million CLO transaction to market, its first offering since 2015.

In the secondary market, 2.0 BB and B CLO spreads were quoted 25 basis points weaker over the previous week, while the rest of the capital stack was flat. CLO BB-rated spreads traded 25 bps wider at Libor plus 975 bps, while B spreads eased 25 bps to Libor plus 1,450 bps area over the past week, according to a BofA Merrill Lynch report released on Tuesday.

AAAs were unchanged at Libor plus 155 bps.

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