Highbridge, Columbia, Hildene sell CLOs; late rush pushes 2013 issuance to about $81 billion

By Cristal Cody

Tupelo, Miss., Dec. 24 - The U.S. CLO market saw a few deals price in front of Christmas that sent year-to-date issuance to about $81 billion, while other transactions will be pushed to the 2014 calendar, according to informed sources.

CLO managers that priced over the past week included Highbridge Principal Strategies LLC, Columbia Management Investment Advisors, LLC and Hildene Leveraged Credit, LLC, sources said.

Activity on Tuesday was nearly "non-existent," a market source said.

The bond markets closed early and will be closed on Wednesday for the Christmas holiday.

CLO activity is not expected to pick back up until the New Year, market sources said.

Highbridge taps market

Highbridge Principal Strategies sold $409.7 million of notes due Jan. 18, 2025 in the Highbridge Loan Management 3-2014 Ltd./Highbridge Loan Management 3-2014 LLC deal, a market source said.

The CLO priced $246 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 148 basis points and $50 million of class A-2 senior secured floating-rate notes (/AA/) at Libor plus 185 bps at the top of the capital structure.

The CLO also sold $37.25 million of class B senior secured deferrable floating-rate notes (/A/) at Libor plus 290 bps; $20.25 million of class C senior secured deferrable floating-rate notes (/BBB/) at Libor plus 360 bps; $17 million of class D senior secured deferrable floating-rate notes (/BB/) at Libor plus 500 bps; $7.75 million of class E senior secured deferrable floating-rate notes (/B/) at Libor plus 600 bps and $31.45 million of subordinated notes.

Credit Suisse Securities (USA) LLC arranged the deal.

Highbridge Principal Strategies, an affiliate of Highbridge Capital Management, LLC, will manage the CLO.

The New York City-based investment management firm brought the $412.75 million Highbridge Loan Management 2013-2, Ltd./Highbridge Loan Management 2013-2 LLC transaction in August. Highbridge priced its first CLO, the $313 million Highbridge Loan Management 2012-1 Ltd. deal, in September 2012.

Columbia sells CLO

Columbia Management Investment Advisors priced $418.25 million of notes due Jan. 25, 2026 in the Cent CLO 20 Ltd./Cent CLO 20 Corp. offering via Morgan Stanley & Co. LLC, a source said.

Cent CLO 20 sold $3.75 million of class X floating-rate notes (/AAA/) at Libor plus 100 bps; $285 million of class A senior secured floating-rate notes (/AAA/) at Libor plus 148 basis points; $29.75 million of class B-1 senior secured floating-rate notes (/AA/) at Libor plus 200 bps; $20 million of 4.33% class B-2 senior secured fixed-rate notes (/AA/); $38.5 million of class C deferrable floating-rate notes (/A/) at Libor plus 300 bps; $22.25 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 350 bps; $19 million of class E deferrable floating-rate notes (/BB/) at Libor plus 460 bps and $44.75 million of subordinated notes.

The Boston-based investment management firm was last in the market in October when it priced the $411.4 million Cent CLO 19 Ltd./Cent CLO 19 Corp. transaction.

Hildene prices offering

Hildene Leveraged Credit sold $309.75 million of notes due Jan. 17, 2026 in the Hildene CLO I Ltd./Hildene CLO I LLC deal, a market source said.

The CLO priced $187.5 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 150 bps; $28.5 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 220 bps; $10 million of 4.65% class B-2 senior secured fixed-rate notes (Aa2); $16.5 million of class C deferrable mezzanine floating-rate notes (A2) at Libor plus 300 bps; $18.5 million of class D deferrable mezzanine floating-rate notes (Baa3) at Libor plus 375 bps; $14.5 million of class E deferrable mezzanine floating-rate notes (Ba3) at Libor plus 515 bps; $6 million of class F deferrable mezzanine floating-rate notes (B2) at Libor plus 625 bps and $28.25 million of subordinated notes.

BofA Merrill Lynch arranged the transaction.

Hildene Leveraged Credit will manage the CLO.

Proceeds will be used to purchase assets to reach a target portfolio of about $300 million of leveraged loans.

Hildene Leveraged Credit is a division of New York-based asset management firm Hildene Capital Management, LLC.

Regiment Capital active

Regiment Capital Management, LLC raised $411,029,000 in the CLO offering of notes due January 2026 via Wells Fargo Securities, LLC, according to a market source.

The Cavalry CLO III, Ltd./Cavalry CLO III, LLC vehicle priced $245 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 145 bps; $40 million of class B senior secured floating-rate notes (/AA/) at Libor plus 200 bps; $35.5 million of class C secured deferrable floating-rate notes (/A/) at Libor plus 280 bps; $30,529,000 of class D secured deferrable floating-rate notes (/BBB-/) at Libor plus 330 bps and $60 million of subordinated notes.

Regiment Capital Management, a Boston-based asset management firm, will manage the CLO.

The firm sold the $455.53 million Cavalry CLO II Ltd./Cavalry CLO II LLC deal in February.

© 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.