Primary 'busy'; Carlyle raises $617.5 million in 11-year CLO; volume stands at $44.2 billion

By Cristal Cody

Tupelo, Miss., May 27 - Carlyle Investment Management LLC was in the primary market with a $617.5 million collateralized loan obligation deal, according to a source.

Carlyle placed the AAA tranche at Libor plus 147 basis points, in line with recent deals.

Year-to-date, CLO issuance volume stands at $44.2 billion, according to a BMO Capital Markets note.

Onex Credit Partners LLC has brought the largest CLO deal so far in 2014 with a $1 billion transaction that priced in the previous week, according to market sources.

The CLO primary market is expected to see a few more deals price before the month closes, according to a market source.

"It should be busy," the source said.

CLO managers in the pipeline include NewMark Capital Management, LLC, which plans a previously announced $400 million deal, according to a market source.

Carlyle prices $617.5 million

Carlyle Investment Management priced $617.5 million of notes due 2025 in the Carlyle Global Market Strategies CLO 2014-2, Ltd./Carlyle Global Market Strategies CLO 2014-2 LLC deal, according to a market source.

The CLO sold $377 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 147 bps and $80 million of class B senior secured floating-rate notes (/AA/) at Libor plus 200 bps at the top of the capital structure.

The CLO also priced $40 million of class C deferrable floating-rate notes (/A/) at Libor plus 285 bps; $31.5 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 350 bps; $26.4 million of class E deferrable floating-rate notes (/BB/) at Libor plus 475 bps; $11.6 million of class F deferrable floating-rate notes (/B/) at Libor plus 550 bps and $51 million of subordinated notes.

Mitsubishi UFJ Securities (USA) Inc. was the placement agent.

Carlyle Investment Management will manage the CLO, which is backed primarily by broadly syndicated senior secured corporate loans.

The CLO has a two-year non-call period and a four-year reinvestment period.

Carlyle Investment Management, part of the Washington, D.C.-based Carlyle Group, was last in the U.S. market on Feb. 28 with the $726.5 million Carlyle Global Market Strategies CLO 2014-1, Ltd. deal.

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