Apollo Credit brings $1.54 billion CLO; 3i, Apollo Global tap European market; AAAs improve

By Cristal Cody

Tupelo, Miss., June 6 – Apollo Credit Management (CLO) LLC priced a $1,542,100,000 collateralized loan obligation deal on Friday in the largest offering brought since the financial crisis, according to a market source.

Apollo sold the AAA tranche at Libor plus 143 basis points.

The deal is the second $1 billion-plus CLO offering in less than a month. Onex Credit Partners LLC priced the $1,001,750,000 OCP CLO 2014-6 Ltd./OCP CLO 2014-6 Corp. transaction on May 22.

Friday’s pricing action also included euro-denominated deals from 3i Debt Management Investments Ltd. and Apollo Global Management, LLC.

3i Debt priced €525 million of notes in the Harvest IX CLO Ltd. offering and placed the AAA tranche at Euribor plus 135 bps.

Apollo Global Management brought a €382.4 million European CLO and priced the AAA-rated notes at Euribor plus 135 bps.

“AAA spreads have shown a slight bias toward tightening, despite the large primary supply,” Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Jason McNeilis said in a note.

NewStar Financial, Inc. returned to the market after its April deal with a $409,417,000 middle market CLO transaction, according to sources.

The CLO priced the AAA tranche at Libor plus 175 bps.

Primary action is expected to stay strong through June with nearly $15 billion of transactions in the pipeline, a source said on Friday.

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