Oak Hill, BlackRock price; Cerberus brings middle-market CLO; BBBs, Bs widen in secondary

By Cristal Cody

Tupelo, Miss., Oct. 26 – CLO managers Oak Hill Advisors LP, BlackRock Financial Management, Inc. and Cerberus Capital Management, LP tapped the broadly syndicated and middle market spaces.

Oak Hill Advisors priced $407.71 million of notes due Oct. 20, 2028 in its third new CLO offering this year.

BlackRock Financial Management printed a $620.3 million CLO deal, its third new CLO transaction year to date.

Cerberus Capital Management brought its first CLO transaction of the year and sold $413.3 million of notes in the middle-market deal.

The new transactions bring the monthly total up to $4.9 billion from 10 CLO deals, according to J.P. Morgan Securities LLC.

“The new issue US CLO total, currently at $84.8 [billion] YTD, is inching toward the lower bound of our FY forecast of $100 [billion],” JPMorgan analysts said in a note. “In secondary, liabilities across the capital structure continue to leak wider on selling pressures.”

JPMorgan said CLO AAA, AA, and single-A spreads in its index widened 4 to 5 basis points over the past week.

In the secondary market, U.S. BWIC items totaling $800 million appeared over the past week, with about $30 million in AAA tranches, $150 million in BBB to B tranches and about $140 million of equity notes up for bid, according to BofA Merrill Lynch.

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