Primary brisk; Sankaty prices €361.4 million CLO; Atrium XI, Cedar Funding IV terms emerge

By Rebecca Melvin

New York, Sept. 17 – The CLO primary market, which has heated up in the last week or so, remained brisk on Wednesday, while the secondary market, which saw seven to 10 bid-wanted-in-competition lists in the session, was also active and deemed strong.

In the primary market, Sankaty Advisors LLC priced an upsized €361.4 million of euro-denominated notes in a collateralized loan obligation transaction, according to a market source. The deal was upsized from €310 million.

The Sankaty pricing was seen in line with market trends, a New York-based trader said.

Terms also emerged on the Cedar Funding IV CLO Ltd./Cedar Funding IV CLO LLC deal for $460.85 million and Atrium XI/Atrium XI LLC’s deal for $1.02 billion of notes due October 2025.

“All the dealers are printing deals, not at the tightest levels that they’ve been all year, but they are printing,” the trader said.

In the secondary market, BWIC lists have been strong this week after a lull for the first week and a half after Labor Day, the trader said.

“People were getting back and waiting to feel out the market, with everyone lighter at the end of the summer,” he said.

Pricing has been firming up gradually this month, with shorter-duration issues firmest across all tranches, and a bit weaker in the longer-dated issues.

“Everything from AAA to equity is firmer in the shorter stuff,” the trader said.

© 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.