Bain Capital prices its 49th CLO; secondary’s lower-rated volume picks up

Chicago, Sept. 16 – The primary market for collateralized loan debt was generally quiet; however, Bain Capital Credit LP emerged with its 49th CLO since 1999 on Wednesday for $446.38 million.

The Bain Capital Credit CLO 2020-3 Ltd./Bain Capital Credit CLO 2020-3 LLC portfolio is expected to close on Oct. 20.

In the secondary market on Wednesday, $357.61 million of investment-grade CBO/CDO/CLO paper traded, down from $1.79 billion on Tuesday and $895.52 million on Monday, according to Trace data.

Lower-rated securities were traded with volume at $143.13 million on Wednesday, up from $25.59 million on Tuesday but down from $189.9 million on Monday.

Bain brought its new CLO to market with a notably heavy emphasis on tech in its portfolio distribution. Approximately a combined 17% of the portfolio is based on either IT services or software. Another 6% comes from diversified telecommunication services.

All five of the tranches are floating-rate and linked to Libor; however, the transaction does have fallback language.

The CLO has a three-year reinvestment period, and S&P Global Ratings notes that the collateral manager has “an average portfolio turnover rate of 25.74% over the past 12 months.” According to S&P, this is higher than the average for all CLO 2.0 transactions, at 19.43%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.