Intermediate Capital, Onex, Angelo Gordon prep CLOs; NewStar retains three CLO tranches

By Cristal Cody

Tupelo, Miss., Sept. 13 - Pricing action in the CLO market may slow in the first half of the upcoming week until after the two-day Federal Open Market Committee, according to informed sources.

The market expects the FOMC to potentially announce when the Federal Reserve will taper its $85 billion-a-month asset purchases.

"It's hard to price a deal before that because you don't want to miss out if things go better afterward," a source said.

About $15 billion of new broadly syndicated and middle market CLO transactions are in the pipeline with five to 10 deals expected to price in the near term, including from Intermediate Capital Group plc, Onex Corp. and Angelo, Gordon & Co., according to informed sources.

St. Paul's CLO III in works

London-based investment firm Intermediate Capital Group has a second European CLO deal, St. Paul's CLO III Ltd., in the pipeline for later in the year, according to informed market sources.

J.P. Morgan Securities LLC is the placement agent.

Intermediate Capital Managers Ltd., a subsidiary of Intermediate Capital Group, will manage the CLO.

Intermediate Capital Group priced the €400 million St. Paul's CLO II Ltd. transaction in July.

Angelo Gordon plans deal

Angelo Gordon plans to price the $500 million Northwoods Capital X, Ltd. CLO transaction, according to an informed source.

Morgan Stanley & Co. LLC is the placement agent.

The New York City-based alternative investment manager priced the $625 million Northwoods Capital IX, Ltd. deal in November.

Onex to sell $400 million

CLO manager Onex intends to price about $400 million in a CLO offering via J.P. Morgan Securities LLC in September, according to an informed market source.

The Toronto-based private equity firm reported in August in its second-quarter earnings results that the company planned to bring its fourth CLO.

The company closed on the $511.1 million OCP CLO 2013-3 Ltd./OCP CLO 2013-3 Corp. transaction in March.

NewStar keeps three tranches

NewStar Financial, Inc. said in an 8-K filing with the Securities and Exchange Commission on Friday that it closed on Wednesday on its $400 million CLO and retained all of the class F notes, class G notes and the equity tranche, which totaled about $61.4 million and represented about 15% of the value of the collateral pool.

Investors purchased about $338.6 million of the floating-rate asset-backed notes, which represented about 85% of the value of the collateral pool, according to the SEC filing.

NewStar Commercial Loan Funding 2013-1 LLC priced $202.6 million of class A-T senior secured floating-rate notes (Aaa/AAA/); $35 million of class A-R senior secured floating-rate notes (Aaa/AAA/); $38 million of class B senior secured floating-rate notes (/AA/); $36 million of class C secured deferrable floating-rate notes (/A/); $21 million of class D secured deferrable floating-rate notes (/BBB/); $6 million of class E secured deferrable floating-rate notes (/BBB-); $17.4 million of class F secured deferrable floating-rate notes (/BB/); $15.2 million of class G secured deferrable floating-rate notes (/B/) and $28.8 million of subordinated notes.

Boston-based NewStar Financial manages the CLO, which is backed by a diversified portfolio of commercial loans originated and serviced by the company.

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