CLO market sees new launches, including CVC Apidos, BlueMountain; Sound Point spreads flat

By Rebecca Melvin

New York, Dec. 3 - New collateralized loan obligation deals were added to the calendar in the CLO market on Tuesday, as the pace of launches and pricings appeared to pick up.

CVC Credit Partners, LLC plans to sell $571 million of notes due January 2025 in a typical cash-flow CLO to be sold via Apidos CLO XVI/Apidos CLO XVI LLC and which is expected to close Jan. 9.

BlueMountain Capital Management LLC plans to sell about $378 million of notes due April 2025 in its fourth CLO offering of the year via BlueMountain CLO 2013-4 Ltd./BlueMountain CLO 2013-4 LLC.

In addition, final terms materialized for the $635.25 million Sound Point CLO IV, Ltd. floating-rate notes via Sound Point Capital Management LP.

The Sound Point CLO sold $390 million of class A senior floating-rate notes at Libor plus 137 basis points (Aaa); $5 million in class X senior floating-rate notes at Libor plus 100 bps (Aaa); $69 million of class B senior floating-rate notes at Libor plus 160 bps (Aa2); $34 million of class C floating-rate mezzanine notes at Libor plus 235 bps (A2); $32.5 million of class D floating-rate mezzanine notes at Libor plus 350 bps (Baa3); $26.5 million of class E junior floating-rate notes at Libor plus 450 bps (Ba3); and $16.5 million of class F junior floating-rate notes at Libor plus 495 bps (B2). There was also an equity tranche of $61.75 million of subordinated notes that is non-rated.

Rate spreads on the tranches didn't change materially from the previous Sound Point deal. Morgan Stanley & Co. LLC was the underwriter.

It also looked as if the Babson CLO Ltd. 2013-II/Babson CLO 2013-II LLC priced although terms for the $697,725,000 of notes were not available before Prospect News' deadline.

Sound Point spreads flat

Sound Point priced about $635.25 million of floating-rate notes due 2025 at spreads that were little changed from the previous Sound Point deal priced in August.

The Sound Point CLV IV sold $390 million of class A senior floating-rate notes at Libor plus 137 bps (Aaa); $5 million in class X senior floating-rate notes at Libor plus 100 bps (Aaa); $69 million of class B senior floating-rate notes at Libor plus 160 bps (Aa2); $34 million of class C floating-rate mezzanine notes at Libor plus 235 bps (A2); $32.5 million of class D floating-rate mezzanine notes at Libor plus 350 bps (Baa3); $26.5 million of class E junior floating-rate notes at Libor plus 450 bps (Ba3); and $16.5 million of class F junior floating-rate notes at Libor plus 495 bps (B2). There was also an equity tranche of $61.75 million of subordinated notes that is non-rated.

Morgan Stanley & Co. LLC was the underwriter.

Sound Point Capital Management is the CLO manager.

The deal follows Sound Point's CLO III $420.75 million of notes priced in nine tranches at the beginning of August. At that time, the $248 million tranche of class A senior floating-rate notes (Aaa//AAA) priced at Libor plus 135 bps.

New York-based Sound Point is a credit-oriented alternative asset manager with about $2.7 billion of assets under management. It plans to use the proceeds to purchase a $600 million portfolio of primarily leveraged loans.

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