TPG prices $456 million CLO; Oaktree brings second deal; new issue BBB, BB spreads firm

By Cristal Cody

Tupelo, Miss., May 24 – TPG Institutional Credit Partners, LLC priced $456 million of notes in the manager’s first CLO transaction of the year.

In other new issuance, Oaktree Capital Management LP sold $504.7 million of notes in a CLO offering that closed on Thursday. The deal is Oaktree’s second new issue CLO transaction priced year to date.

CLO primary and secondary spreads have improved this week, according to a Wells Fargo Securities LLC analysts’ note on Friday.

In the primary market, AAA-rated tranches were quoted modestly better in the Libor plus 130 basis points area, about 4 bps tighter from a week ago.

New issue BBB spreads firmed to the Libor plus 350 bps area compared to the 375 bps area in late April, the analysts said.

Also, primary BB spreads have improved to the Libor plus 650 bps area versus the Libor plus 705 bps area in mid-April.

Meanwhile, in the past five weeks, secondary CLO AAA spreads have tightened 10 bps to 15 bps, while BB spreads have come in by 75 bps, the Wells Fargo note said.

“Spreads tightened again this week, despite a bevy of bid lists on Thursday,” the analysts said.

Broadly syndicated CLO AAAs were quoted in the secondary market at the Libor plus 115 bps area.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.