Ares to tap CLO market over week; CSAM offers $819 million CLO; BB, B notes widen

By Cristal Cody

Tupelo, Miss., Sept. 29 – Primary action in the CLO market remains light, with one deal priced on Tuesday from Fortress Investment Group LLC, according to a market source.

The Fortress Credit BSL III Ltd./Fortress Credit BSL III LLC transaction priced via Mitsubishi UFJ Securities (USA) Inc. Final pricing details were not available by press time.

Ares Management LLC is expected to price its previously reported $707 million CLO deal, Ares XXXVII CLO, Ltd./Ares XXXVII CLO, LLC, via Goldman Sachs & Co. by the end of the week, a source said.

Also in the near-term pipeline, Credit Suisse Asset Management, LLC is offering $819 million of notes in a new CLO deal. Credit Suisse Securities (USA) LLC is the placement agent.

“There’s a few deals, but generally the primary is much slower,” a market source said. “There’s definitely more secondary trading volume.”

CLO volume is expected to stay slow in October while forecasts call for about $100 billion of total issuance for the year.

In the CLO secondary market, BB-rated and B-rated notes were quoted 25 basis points to 50 bps wider this week.

AAA-rated notes have “held in a little bit,” a market source said. “Those are still 150 [bps] to 175 [bps]. Not much has changed at the top of the capital structure.”

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