Brigade prices $504.9 million CLO; AAAs at 153 bps spread, mid-range of deals year to date

By Cristal Cody

Tupelo, Miss., March 12 – New CLO issuance includes a $504.9 million deal from Brigade Capital Management, LLC, according to a market source.

The transaction is the firm’s first CLO deal of 2015 following four offerings in 2014.

The Brigade CLO priced the AAA-rated tranche of notes at Libor plus 153 basis points, in the mid-range of recent issuance.

CLO AAA notes have priced as tight as Libor plus 140 bps and as wide as Libor plus 177 bps year to date, according to market sources.

More than $15 billion of CLOs have priced globally in 2015, according to data compiled by Prospect News.

Brigade Capital Management priced $504.9 million of notes due April 19, 2027 in the CLO deal via arranger Citigroup Global Markets Inc., according to a market source.

Battalion CLO VIII Ltd./Battalion CLO VIII LLC sold $321.4 million of class A-1 senior secured floating-rate notes at Libor plus 153 bps; $45 million of class A-2 senior secured floating-rate notes at Libor plus 235 bps; $27.9 million of class B senior secured deferrable floating-rate notes at Libor plus 335 bps; $30.7 million of class C senior secured deferrable floating-rate notes at Libor plus 390 bps; $31.4 million of class D secured deferrable floating-rate notes at Libor plus 545 bps and $48.5 million of subordinated notes.

The transaction is backed primarily by broadly syndicated first-lien senior secured corporate loans and eligible investments.

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