CELF prices €415 million; NewStar sells middle-market CLO; CLOs improve in secondary trade

By Cristal Cody

Eureka Springs, Ark., Oct. 25 – Details emerged on a new euro-denominated broadly syndicated CLO deal and a new U.S. middle-market offering.

CELF Advisors LLP priced a €415 million CLO in the firm’s second new deal of the year.

In the middle-market space, NewStar Financial, Inc. brought its second deal of 2016 and priced a $505.5 million transaction.

U.S. and European AAA-rated CLO spreads have improved in the secondary market, according to a Wells Fargo Securities, LLC report on Monday.

“The strong technical rally has continued into October,” the Wells Fargo analysts said. “In the secondary market, AAA to BB tranches are currently trading at their 52-week tights, though the month-over-month changes in spreads have become smaller.”

CLO 2.0 AAA-rated notes were trading on average about 4 basis points tighter on the month at Libor plus 138 bps.

In the European CLO secondary market, AAAs have tightened 15 bps from a month ago to Euribor plus 105 bps, according to the note.

Trading volume was light on Monday with $42.7 million of high-grade CBO/CDO/CLO issues and $49.2 million of non-investment-grade securities traded, according to the latest data from Trace.

CELF prices €415 million

CELF Advisors sold €415 million of notes due Jan. 18, 2030 in the new euro-denominated CLO offering, according to a market source.

Carlyle Global Market Strategies Euro CLO 2016-2 DAC priced €232 million of class A-1 senior secured floating-rate notes at Euribor plus 100 bps and €59 million of class A-2 senior secured floating-rate notes at Euribor plus 170 bps at the top of the capital structure.

BofA Merrill Lynch was the placement agent.

The deal is collateralized primarily by senior secured loans and senior secured bonds.

The CLO manager has priced two new CLO deals and refinanced one vintage CLO transaction year to date.

London-based CELF is part of the Washington, D.C.-based Carlyle Group LP.

NewStar taps market

NewStar Financial sold $505.5 million of notes in the middle-market CLO transaction, according to a market source.

NewStar Berkeley Fund CLO 2016-1 priced $290 million of class A floating-rate notes at Libor plus 210 bps in the senior tranche.

Citigroup Global Markets Inc. arranged the offering.

Boston-based NewStar has priced two middle-market CLO deals year to date.

NewStar brought three middle-market CLOs to market in 2015.

© 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.