CLO primary action quiets; Highbridge preps $400 million deal; spreads mostly unchanged

By Cristal Cody

Tupelo, Miss., Feb. 26 – CLO primary action quieted on Friday, but the week saw three deals price after only two broadly syndicated transactions had been brought in January.

Credit Suisse Asset Management, LLC, Neuberger Berman Fixed Income LLC and BlackRock Financial Management, Inc. tapped the market over the week.

The CLO transactions have “taken a long time to even get to this point,” a source said. “Those three have been quietly marketed all year.”

A number of deals continue to be marketed.

Highbridge Principal Strategies LLC is expected to tap the market in the coming weeks with a $400 million CLO offering.

CreekSource LLC and Crestline Denali Capital, LP also plan to price new CLOs.

“Volatility has declined, and that’s allowed some deals to price,” a market source said. “There’s probably going to be a spattering of a few deals here and there, but it doesn’t feel like it’s turned back on or anything.”

CLO spreads were mostly unchanged on the week but remain soft.

Highbridge Principal Strategies is in the deal pipeline with a $400 million CLO transaction, according to a market source.

Morgan Stanley & Co. LLC is the placement agent.

Highbridge closed on three CLO deals in 2015.

The subsidiary of Highbridge Capital Management, LLC is based in New York City.

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