Highbridge, Carlyle, On Deck in CLO deal pipeline; year-to-date volume ‘historically low’

By Cristal Cody

Eureka Springs, Ark., April 20 – U.S. CLO pricing action remains light so far in April, but more deals are joining the pipeline, according to market sources on Wednesday.

Both Highbridge Principal Strategies LLC and Carlyle Investment Management LLC plan to return to the U.S. primary market this year with a second CLO offering.

Also, On Deck Capital, Inc. announced plans to place a $250 million private deal.

“Two CLOs have been issued so far in April,” Deutsche Bank Securities Inc. CLO analyst Bjarni Torfason said in a note on Wednesday. “While a number of deals are being marketed and we expect issuance to pick up before April ends, the volumes remain historically low.”

The market has seen $9.1 billion of CLO volume year to date, compared to $37.11 billion of issuance in the same period a year ago, he said.

Highbridge Principal Strategies plans to price $502.05 million of notes due May 15, 2028 in the CLO deal via Citigroup Global Markets Inc., according to a market source. The offering will be though the HPS Loan Management 9-2016 Ltd./HPS Loan Management 9-2016 LLC vehicle.

Meanwhile, Carlyle GMS CLO Management LLC plans to price $498.7 million of notes due May 15, 2028 in the Carlyle Global Market Strategies CLO 2016-2, Ltd./Carlyle Global Market Strategies CLO 2016-2 LLC deal, according to a market source.

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