CLO primary action on way for U.S., European markets; Carlyle prices its third CLO of year

By Cristal Cody

Eureka Springs, Ark., Aug. 18 – New CLO issuance is expected over the rest of the month in both the U.S. and European primary markets, according to a market source on Thursday.

U.S. dollar volume totals more than $35 billion year to date, while euro-denominated CLO issuance has risen to more than €10.6 billion through mid-August, according to Prospect News data.

Meanwhile, details emerged on Carlyle GMS CLO Management LLC’s $504.8 million CLO offering, the firm’s third transaction of the year.

Carlyle raises $504.8 million

Carlyle GMS CLO Management priced $504.8 million of notes due Oct. 20, 2029 in the new CLO, according to a market source.

Carlyle Global Market Strategies CLO 2016-3, Ltd./Carlyle Global Market Strategies CLO 2016-3 LLC priced $323 million of class A-1 floating-rate notes at Libor plus 151 basis points in the senior tranche.

Citigroup Global Markets Inc. was the placement agent.

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

Proceeds will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.

The CLO transaction was Carlyle’s third U.S. deal year to date.

Carlyle Investment Management priced five U.S. broadly syndicated CLO deals and one middle-market CLO offering in 2015.

The asset management firm is an affiliate of the Washington, D.C.-based Carlyle Group.

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