AGL prices $580.95 million CLO; Europe primary active; CSAM refinances; spreads tighten

By Cristal Cody

Tupelo, Miss., Dec. 14 – Pricing action remains steady in December with new dollar- and euro-denominated CLOs, as well as refinancing deals, continuing to print.

Last week saw the “heaviest weekly supply since the end of September,” according to a BofA Securities, Inc. research note on Friday.

About a dozen managers have been in the dollar and euro primary markets since the start of the month, sources report.

In the European primary market last week, CIFC Asset Management Europe LLC priced €368.75 million of notes in the CIFC European Funding CLO III DAC deal, while Capital Four CLO Management K/S priced €356.2 million of notes in the Capital Four CLO II DAC offering, sources said.

Final pricing details were not immediately available.

Meanwhile in new dollar issuance, AGL CLO Credit Management LP sold $580.95 million of notes and loans in the manager’s seventh new broadly syndicated CLO transaction of the year.

The refinancing space also is remaining active in December. Credit Suisse Asset Management, LLC refinanced $45 million of fixed-rate notes from a 2018 broadly syndicated CLO.

CLO managers have priced more than $83 billion of dollar-denominated CLOs and about €22 billion of euro-denominated CLOs year to date, market sources report.

About $32 billion of vintage CLO notes have been refinanced year to date.

Dollar, euro spreads firm

In the secondary market, BWIC volume rose to $1.3 billion for the week ended Friday from $697 million in the prior week, according to the BofA Securities note.

Dollar CLO spreads tightened across the capital structure with AAAs 5 basis points tighter, AA-A tranches 10 bps better, BBBs in by 15 bps, and BB- and B-rated spreads 25 bps tighter.

AAAs were quoted 5 bps better on the week at Libor plus 120 bps, while BB tranches came in 25 bps to the Libor plus 900 bps average.

Euro AAA tranches firmed 10 bps over the week to Euribor plus 120 bps, while euro-denominated BB tranches came in 45 bps to Euribor plus 625 bps, according to a BofA Securities note on Monday.

“The secondary market saw decent activity, mostly concentrated in CLO and throughout the capital stack – demand for mezz is strong,” according to the note. “Spreads marched under different tunes: sideways for ABS/ RMBS and tighter for CLOs.”

Euro-denominated BWIC volume was estimated for the week at €250 million to €300 million.

AGL CLO 9 prints

AGL CLO Credit Management priced $580.95 million of notes and loans due Jan. 20, 2034 in the new CLO, according to market sources.

AGL CLO 9 Ltd./AGL CLO 9 LLC sold $149.9 million of class AS floating-rate notes at Libor plus 150 bps and $209.7 million of class AL loans at Libor plus 150 bps at the top of the capital stack.

Morgan Stanley & Co. LLC was the placement agent.

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

AGL Credit Management has issued seven new CLOs year to date.

The New York-based investment firm was founded in 2019 and is a subsidiary of the Abu Dhabi Investment Authority.

CSAM refinances notes

Credit Suisse Asset Management, LLC priced $45 million of notes due Jan. 23, 2031 in a partial refinancing of a 2018 broadly syndicated CLO offering, according to market sources.

Madison Park Funding XLVII Ltd./Madison Park Funding XLVII LLC priced the $45 million of class A-2-R floating-rate notes (//AAA) at Libor plus 145 bps.

The CLO, previously known as Atrium XV LLC, originally issued the class A-2 notes in December 2018 with a fixed-rate coupon of 4.489%.

Credit Suisse Securities (USA) LLC was the refinancing agent.

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

Credit Suisse Asset Management is a unit of Credit Suisse Group AG.

© 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.