Fort Washington sells debut CLO; Benefit Street, Crescent Capital price; Carlson eyed

By Cristal Cody

Tupelo, Miss., Oct. 18 – October supply continues in the dollar-denominated CLO primary market with three more issuers pricing new transactions.

Fort Washington Investment Advisors, Inc. sold $556.17 million of notes in the manager’s first broadly syndicated CLO deal.

Benefit Street Partners LLC priced $507.75 million of notes in the manager’s second CLO offering of the year.

Also, Crescent Capital Group LP priced $406.5 million of notes in the new Atlas Senior Loan Fund XV, Ltd./Atlas Senior Loan Fund XV, LLC deal via Barclays, a source said. Final pricing details were not immediately available.

In other issuance, Carlson Capital, LP sold $337 million of notes in a partial refinancing of a vintage 2016 CLO. The manager tightened the spread on the AAA-rated tranche by 40 basis points.

“The average amount of ‘AAAsf’ spread reduction achieved when refinancing U.S. broadly syndicated loan CLOs has been relatively constant in 2019, with activity stable for the last six months,” Fitch Ratings said in a report on Friday. “The current average reduction for CLOs that refinance is 32 [bps], slightly down from 35 [bps] in 2Q19, and down from 49 [bps] in 3Q18.”

More than $34 billion of CLOs have been refinanced year to date, market sources report.

About $90 billion of new CLOs have priced this year.

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