CLO primary supply slows; Brigade prices $507.75 million; Oak Hill sells $603.5 million

By Cristal Cody

Tupelo, Miss., March 11 – U.S. CLO primary market volume is slowing in March.

Three broadly syndicated deals reportedly priced in the past week, according to a BofA Merrill Lynch analysts report released on Monday.

Meanwhile, secondary market volume was busy with $967 million of BWIC volume, moderately higher than the $712 million three-month average run rate, according to the research report.

“Investor demand was strong for most of the capital structure, with spreads tightening 2-10 [basis points week over week] across AAA-BB tranches,” the analysts said.

CLO AAA-rated notes ended Friday 2 bps softer on the week in the Libor plus 125 bps area, according to the report.

Meanwhile, details emerged on two new CLO transactions.

Brigade Capital Management, LLC sold $507.75 million of notes.

Oak Hill Advisors LP priced a $603.5 million offering.

Year to date, CLO managers have sold more than $18 billion of new issue CLO transactions, according to market sources.

In its deal, Brigade Capital Management priced $507.75 million of notes in the Battalion CLO XIV Ltd./Battalion CLO XIV LLC deal, according to market sources.

Battalion CLO XIV sold $305 million of class A-1 floating-rate notes at Libor plus 145 bps and $17.5 million of 4.17% class A-2 fixed-rate notes at the top of the capital structure.

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