CIFC, Elmwood, Wellfleet price CLOs; February supply gains; Europe deal pipeline strong

By Cristal Cody

Tupelo, Miss., Feb. 25 – CLO supply is improving with issuance in February already double the volume brought to the market in January.

In the new issue market, CIFC CLO Management II LLC priced a $606.5 million CLO.

Elmwood Asset Management LLC brought $499.4 million of notes to the primary market in its first transaction since the CLO manager was formed in 2018.

Wellfleet Credit Partners, LLC also priced a $314.83 million CLO offering.

New CLO supply totals $11 billion in February after several issuers tapped the primary market last week, according to a BofA Merrill Lynch report released on Monday.

Volume is more than double the $5 billion seen in January.

Meanwhile, the European primary market also is staying busy in February. New issue volume is expected to remain similar to the €27 billion of supply seen in 2018, Fitch Ratings said in a release on Monday.

“The pipeline is strong and this provides demand for leveraged loans,” Fitch said. “In 2019, we expect CLOs to take up about half of all leveraged loans issuance, which we forecast at €55 billion, down from €69 billion in 2018, with the rest of the issuance relying on an appetite of a wider investor base.”

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