Acis prices $504.75 million; Oaktree, 3i prep deals; number of European CLOs in pipeline

By Cristal Cody

Tupelo, Miss., May 16 - Acis Capital Management, LP raised $504.75 million in a collateralized loan obligation offering, according to a market source on Friday.

Acis priced the AAA-rated notes in the CLO structure at Libor plus 142 basis points, on the tight side of recent issuance.

Ares Management LLC brought a $360.75 million CLO deal via Deutsche Bank Securities Inc., according to a market source. Final pricing terms were not available by press time.

More than $40 billion of CLOs have priced year to date, and about $11 billion of deals are in the pipeline, a source said.

Oaktree Capital Management (UK) LLP plans to offer €375 million of notes due 2027 in the Arbour CLO Ltd. offering, according to market sources.

Also coming up, 3i Debt Management U.S. LLC intends to bring a $515.55 million CLO deal, according to a market source.

"Coming into 2014, most loan market participants were wary of the Volcker rule, fearing that it could hamper new CLO creation in the U.S. by removing an important buyer of AAA tranches," Barclays analysts said in a note on Friday. "Meanwhile, European CLO creation was widely expected to accelerate from 2013's modest base.

"Perhaps the biggest shock has been the amount of new CLO creation in the U.S. Meanwhile, European CLO creation has been, if anything, mildly behind expectations."

About €4 billion of European CLOs have priced in 2014.

"Europe's slower-than-expected start is not particularly troublesome, as a number of deals are known to be ramping up," the Barclays analysts said.

Acis Capital prices CLO

Acis Capital Management sold $504.75 million of notes due May 1, 2026 in the CLO offering, according to a market source.

ACIS CLO 2014-4 Ltd./ACIS CLO 2014-4 LLC priced $4 million of class X floating-rate notes (/AAA/) at Libor plus 100 bps; $296 million of class A floating-rate notes (/AAA/) at Libor plus 142 bps; $68 million of class B floating-rate notes (/AA/) at Libor plus 177 bps; $33 million of class C deferrable floating-rate notes (/A/) at Libor plus 255 bps; $28.5 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 310 bps; $20.5 million of class E deferrable floating-rate notes (/BB/) at Libor plus 480 bps; $4 million of class F deferrable floating-rate notes (/B+/) at Libor plus 515 bps and $50.75 million of subordinated notes.

Jefferies LLC arranged the transaction.

Acis Capital Management will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated senior secured corporate loans.

Acis Capital Management was in the primary market on Jan. 16 with the $416.75 million Acis CLO 2014-3 Ltd./Acis CLO 2014-3 LLC deal.

The affiliate of Dallas-based Highland Capital Management, LP brought two CLO transactions in 2013.

Oaktree preps European CLO

Oaktree Capital Management (UK) plans to price the €375 million Arbour CLO via Barclays Bank plc, according to market sources.

The deal includes €208.75 million of class A senior secured floating-rate notes (Aaa); €26.25 million of class B-1 senior secured fixed-rate notes (Aa2); €19.95 million of class B-2 senior secured floating-rate notes (Aa2); €11.25 million of class C-1 senior secured deferrable fixed-rate notes (A2); €10.75 million of class C-2 senior secured deferrable floating-rate notes (A2); €19.75 million of class D senior secured deferrable floating-rate notes (Baa2); €26,675,000 of class E senior secured deferrable floating-rate notes (Ba2); €12,125,000 of class F senior secured deferrable floating-rate notes (B2) and €39.5 million of subordinated notes.

London-based Oaktree Capital Management (UK) will manage the CLO.

The CLO is primarily backed by senior secured loans or senior secured bonds.

Oaktree Capital Management (UK) is an affiliate of Los Angeles-based Oaktree Capital Management, LP.

3i preps $515.55 million CLO

3i Debt Management is expected to offer $515.55 million of notes due 2026 in the Jamestown CLO IV Ltd./Jamestown CLO IV Corp. deal, according to a market source.

The Rule 144A-eligible offering includes $320 million of class A-1 floating-rate notes (//AAA); $61.5 million of class A-2 floating-rate notes; $22 million of class B floating-rate notes; $30 million of class C floating-rate notes; $28 million of class D floating-rate notes; $4.5 million of class E floating-rate notes and $49.55 million of subordinated notes.

Citigroup Global Markets Inc. is the placement agent.

3i Debt Management will manage the CLO, which is backed primarily by first-lien senior secured loans.

Proceeds from the deal will be used to purchase a portfolio of about $500 million of primarily senior secured leveraged loans.

The firm, a subsidiary of London-based 3i Group plc, was last in the primary market in November with the $515.9 million Jamestown CLO III Ltd. deal.

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