MJX Asset Management prices $506.45 million CLO; primary spreads firm; secondary active

By Cristal Cody

Tupelo, Miss., May 31 – MJX Asset Management LLC priced $506.45 million of notes in the CLO manager’s second CLO offering of the year.

May deal volume slowed, while secondary market activity was strong over the month, Wells Fargo Securities, LLC analysts said in a note on Friday.

During the month, CLO primary spreads “tightened, despite wider spreads in corporates and CMBS,” the analysts said.

New issue CLO A-rated and BBB-rated spreads tightened by 20 basis points to 25 bps, according to the report.

Lower mezzanine primary spreads firmed 30 bps to the Libor plus 650 bps area over the month.

Secondary activity was heavy in May with Trace data volume of $9.4 billion, down slightly from $10.8 billion of volume in April, the analysts said.

In its deal, MJX Asset Management priced $506.45 million of notes due July 15, 2032 in the Venture 37 CLO, Ltd./Venture 37 CLO, LLC transaction, according to market sources.

In the senior secured tranches, the CLO sold $280 million of class A-1N floating-rate notes at Libor plus 139 bps, $30 million of 3.657% class A-1F fixed-rate notes, $15 million of class A-2 floating-rate notes at Libor plus 175 bps, $37 million of class B-N floating-rate notes at Libor plus 190 bps and $13 million of 4.225% class B-2 fixed-rate notes.

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