THL prices; Ares offers $707 million CLO; Fortress in deal pipeline; mezzanine notes soft

By Cristal Cody

Tupelo, Miss., Sept. 28 – The CLO primary market is showing signs of activity, though volume is expected to stay light in the near term, according to market sources on Monday.

THL Credit Advisors LLC tapped the primary market with a $455.56 million CLO deal.

In other primary action, Jefferies Finance LLC sold $409.5 million of notes due Oct. 17, 2026 in the JFIN CLO 2015-II Ltd./JFIN CLO 2015-II LLC offering via Jefferies LLC. The AAA-rated tranche of notes priced at Libor plus 155 basis points, according to a market source. Apex Credit Partners LLC, a subsidiary of Jefferies Finance, will manage the CLO.

In the European primary market, KKR Credit Advisors (Ireland) priced €516.8 million of notes in the Avoca CLO XV Ltd. deal via Barclays Bank plc. The AAA-rated tranche priced at Euribor plus 135 bps, a market source said.

Coming up in new deal action, Ares Management LLC intends to price a $707 million CLO.

Also in the pipeline, Fortress Investment Group LLC plans to bring a $409 million offering.

In the secondary market, nearly $800 million of U.S. supply concentrated in AAA-rated notes was seen over the previous week, according to BofA Merrill Lynch analysts.

The A- and AA-rated notes eased about 5 bps in secondary trading over the past week, while BB and B CLO notes widened 35 bps to 25 bps, BofA Merrill Lynch said.

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