Crescent Capital prices $509.15 million CLO offering; middle-market volume remains thin

By Cristal Cody

Tupelo, Miss., March 12 – Crescent Capital Group LP sold $509.15 million of notes in a new CLO offering expected to close later in March.

Year to date, broadly syndicated CLO volume totals more than $18 billion, according to market sources.

Meanwhile, middle-market CLO supply remains light on wider spreads, according to a Wells Fargo Securities, LLC research report released on Tuesday.

“Middle market CLO issuance has started the year off at a slow pace, with just one new issue deal and one reset pricing,” Wells Fargo Securities senior analyst Dave Preston and associate analyst Mackenzie Miller said. “New issue MM volume is just 20% of 2018 YTD volume. We suspect wider spreads and a technical sell-off at the beginning of the year have delayed issuance. Should spreads tighten, we expect more managers to issue.”

Crescent Capital details

Crescent Capital Group sold $509.15 million of notes due April 22, 2031 in the Atlas Senior Loan Fund XIII, Ltd./Atlas Senior Loan Fund XIII, LLC transaction, according to market sources.

The CLO priced $225 million of class A-1L senior secured floating-rate notes at Libor plus 145 basis points at the top of the capital structure.

Jefferies LLC was the placement agent.

The transaction is collateralized primarily by broadly syndicated senior secured corporate loans.

Crescent Capital is an alternative asset management firm based in Los Angeles.

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