Tikehau sells €435.15 million CLO; Guggenheim reprices; BofA Merrill Lynch ups forecast

By Cristal Cody

Tupelo, Miss., Sept. 25 – The European CLO primary market is seeing deal action in September, while U.S. volume and a strong fourth-quarter supply are pushing volume forecasts to $100 billion for the year.

Tikehau Capital Europe Ltd. priced a €435.15 million transaction in the firm’s third CLO deal to date.

Guggenheim Partners Europe Ltd. repriced €112.7 million of notes in a step-up tranche from a 2015 CLO.

Also this month, Accunia Fondsmaeglerselskab A/S priced the previously reported €386.6 million Accunia European CLO II BV deal.

Euro-denominated CLO new issue, refinancing and reset volume totals more than €30 billion year to date, including €11.6 billion of new issuance, according to a BofA Merrill Lynch note released on Monday.

In U.S. primary action, Redding Ridge Asset Management, LLC priced the $501.58 million seven-part RR 2 Ltd./RR 2 LLC offering via BNP Paribas Securities Corp., a source said. Final pricing details were not immediately available.

The new deal market has been active in September following a heavy wave of refinancing and reset volume.

“With new-issue supply at $78 [billion], a robust 4Q17 pipeline and a strong desire among investors to put money to work, we believe our current forecast of $90 [billion] will be exceeded and revise our 2017 issuance forecast for U.S. CLOs to $100 [billion],” BofA Merrill Lynch analysts said in the note.

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