American Capital brings $552.4 million risk compliant CLO; Europe, middle market active

By Cristal Cody

Tupelo, Miss., May 6 – American Capital, Ltd. raised $552,455,000 of notes in a U.S.- and European-risk retention compliant CLO deal, according to the company and a market source on Wednesday.

“We are pleased to announce our sixth CLO transaction post the credit crisis and our seventh overall,” Mark Pelletier, president of American Capital CLO Management, LLC and president of American Capital Senior Floating, Ltd., said in a news release. “ACAS 2015-1 was structured in an effort to comply with both European and impending U.S. risk retention rules, allowing us to continue to attract repeat as well as new investors to our platform.”

Fitch Ratings said in a risk retention survey report on Wednesday that U.S. CLO managers will continue to actively issue CLOs while meeting upcoming risk retention requirements through a wide range of approaches.

“U.S. CLO managers do not appear to have a one-size-fits-all preferred approach to meeting U.S. risk retention requirements,” Fitch senior director Gioia Dominedo said in a news release. “Not only are multiple approaches being considered, but half of the managers stated that they plan to vary their approach on a deal-by-deal basis.”

In other primary activity, Partners Group (UK) Management Ltd. brought a €414.1 million CLO deal.

In the middle-market space, Fifth Street Senior Floating Rate Corp. priced a $308.98 million CLO transaction.

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