Deal calendar stays light; Acis Capital sells AAA slice of CLO at Libor plus 151 bps

By Cristal Cody

Tupelo, Miss., Jan. 29 - A few U.S. and European CLO deals are in marketing for the February calendar, though issuance is expected to stay light compared to the same period a year ago, according to market sources on Wednesday.

"Not aware of any more deals [for January]," one source said. "There will probably be a couple of deals, but I wouldn't say there will be a lot of deals [in February]."

About $1.56 billion of CLOs have priced in three U.S. transactions year to date, compared to January 2013 when nearly $8.5 billion of CLOs priced in 16 deals, according to market sources.

In new issuance, details emerged for Acis Capital Management, LP's $416.75 million CLO priced earlier in the month.

Acis Capital Management sold the AAA tranche at Libor plus 151 basis points, in line with recent deals that have priced in a range from Libor plus 150 bps to Libor plus 155 bps, a market source said.

Acis raises $416.75 million

Acis Capital Management sold $416.75 million of notes due Feb. 1, 2026 in the CLO deal arranged by Jefferies LLC, according to a market source.

Acis CLO 2014-3 Ltd./Acis CLO 2014-3 LLC priced $3.5 million of class A-X senior secured floating-rate notes (/AAA/) at Libor plus 135 bps; $205 million of class A-1A senior secured floating-rate notes (/AAA/) at Libor plus 151 bps; $25 million of 3.75% class A-1F senior secured fixed-rate notes (/AAA/); $15 million of class A-2A senior secured floating-rate notes (/AAA/) at Libor plus 155 bps and $2 million of class A-2B senior secured floating-rate notes (/AAA/) at Libor plus 200 bps.

The CLO also sold $56 million of class B senior secured floating-rate notes (/AA/) at Libor plus 223 bps; $29 million of class C deferrable floating-rate notes (/A/) at Libor plus 250 bps; $19 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 312 bps; $17.5 million of class E deferrable floating-rate notes (/BB/) at Libor plus 475 bps; $5 million of class F deferrable floating-rate notes (/B+/) at Libor plus 560 bps and $39.75 million of subordinated notes.

Acis Capital Management will manage the CLO, which is backed by a revolving pool of broadly syndicated senior secured corporate loans.

Acis Capital Management, an affiliate of Dallas-based Highland Capital Management, LP, was in the market in 2013 with the $525.5 million Acis CLO 2013-1 Ltd./Acis CLO 2013-1 LLC transaction and the $650 million Acis CLO 2013-2 Ltd./Acis CLO 2013-2 LLC offering.

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