CLO market supply picks up; Brigade prices $405.25 million CLO; lighter euro volume eyed

By Cristal Cody

Tupelo, Miss., Jan. 29 – The CLO primary market has seen both dollar-denominated and euro-denominated issuance so far this week.

Brigade Capital Management, LLC priced $405.25 million of notes in the manager’s first broadly syndicated CLO deal of 2020.

Both Partners Group (UK) Management Ltd. and Investor Credit Management EU Ltd. priced new euro CLO transactions earlier in the week.

Although the European market has kicked off with two new CLOs priced week to date and more expected headed into February, overall issuance is expected to remain lighter in 2020.

The record year for European CLOs in 2019 “is unlikely to be repeated in 2020,” DBRS Morningstar said in a report on Wednesday.

In its deal, Brigade Capital Management priced $405.25 million of notes due Jan. 17, 2033 in the new CLO deal on Tuesday, according to market sources.

Battalion CLO XV Ltd./Battalion CLO XV LLC sold $248 million of class A-1 floating-rate notes at Libor plus 135 basis points at the top of the capital structure.

BofA Securities, Inc. was the placement agent.

The CLO is backed primarily by broadly syndicated first-lien senior secured loans.

Brigade Capital is an investment adviser firm based in New York.

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