CLO deal pipeline grows; Zais Group prices CLO; European issuance on tap

By Cristal Cody

Tupelo, Miss., March 3 - Primary action in the collateralized loan obligation market is expected to continue to pick up steam in March following the strong issuance in late February, according to market sources on Monday.

More than $8 billion of CLOs priced during the month, including six deals in the previous week, sources said.

The CLO deal pipeline increased to more than $17 billion, up from about $16 billion reported the previous week, a market source said.

Zais Group, LLC raised about $310 million in its CLO deal brought in the previous week, according to a market source.

Three European CLO deals have priced in 2013, with 3i Debt Management Investments Ltd. and The Carlyle Group LP tapping the euro market in the previous week, according to informed sources.

Intermediate Capital Group plc is expected to price the €360 million St. Paul's CLO IV Ltd. deal over the week, according to a market source.

Zais Group prices CLO

Zais Group priced about $310 million of notes due March 27, 2026 in the CLO deal via J.P. Morgan Securities LLC, according to a market source.

The Zais CLO 1, Ltd./Zais CLO 1, LLC vehicle sold $187.4 million of class A-1 senior secured floating-rate notes (Aaa//) at Libor plus 140 basis points; $39.1 million of A-2 senior secured floating-rate notes at Libor plus 185 bps; $21.3 million of class B senior secured deferrable floating-rate notes at Libor plus 273 bps; $15.1 million of class C senior secured deferrable floating-rate notes at Libor plus 350 bps; $12.7 million of class D secured deferrable floating-rate notes at Libor plus 465 bps; $8.6 million of class E secured deferrable floating-rate notes at Libor plus 535 bps and $25.7 million of subordinated notes.

Zais Leveraged Loan Manager, LLC will manage the CLO.

The CLO has a non-call period that ends March 27, 2018 and a reinvestment period that ends March 27, 2019.

Collateral consists primarily of broadly syndicated first lien senior secured corporate loans and eligible investments.

Red Bank, N.J.-based Zais Group is a structured credit asset management firm.

© 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.