LCM preps $621.21 million CLO offering; about $12 billion of deals remain in pipeline

By Cristal Cody

Tupelo, Miss., May 12 - About $12 billion of CLO deals are in the near-term pipeline with several transactions expected to price over the week, according to a market source on Monday.

LCM Asset Management LLC is set to bring a $621.21 million CLO offering, according to an informed source.

In new issuance, GSO/Blackstone Debt Funds Management LLC priced the $717.4 million Seneca Park CLO Ltd./Seneca Park CLO LLC deal, according to a market source. Credit Suisse Securities (USA) LLC was the placement agent.

Also in the primary market, Hildene Leveraged Credit, LLC sold the $414 million Hildene CLO II, Ltd./Hildene CLO II LLC transaction via BofA Merrill Lynch, according to a market source. Final pricing terms were not available by press time.

LCM eyes $621.21 million CLO

LCM Asset Management intends to offer $621.21 million of notes due 2026 in the LCM XVI LP/LCM XVI LLC CLO deal, according to an informed source.

The transaction is expected to include $3 million of class X floating-rate notes (//AAA); $378 million of class A floating-rate notes (//AAA); $72.6 million of class B floating-rate notes; $48 million of class C floating-rate notes; $29.4 million of class D floating-rate notes; $28.8 million of class E floating-rate notes and $61.41 million of LP certificates.

Deutsche Bank Securities Inc. is the placement agent.

LCM Asset Management will manage the CLO, which is backed primarily by first-lien senior secured corporate loans.

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

Proceeds will be used to purchase a portfolio of about $600 million of primarily senior secured leveraged loans.

LCM Asset Management refinanced $370.5 million of notes in the LCM X LP/LCM X LLC CLO in April and priced the $624 million LCM XV LP/LCM XV LLC transaction in January.

The New York City-based asset management firm brought two CLO deals in 2013.

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