Carlyle, Bain Capital price CLOs; Black Diamond, Apollo, Triumph Capital in deal pipeline

By Cristal Cody

Eureka Springs, Ark., April 28 – CLO primary action is expected to stay busy over the next few weeks following a stronger pace of issuance in April, according to market sources on Thursday.

Carlyle GMS CLO Management LLC brought to market a $499 million deal.

Bain Capital Credit, LP priced a $401.85 million CLO.

Highbridge Principal Strategies LLC also priced the HPS Loan Management 9-2016 Ltd./HPS Loan Management 9-2016 LLC transaction via Citigroup. Final pricing details were not available by press time.

Looking ahead, Black Diamond Capital Management, LLC is marketing a $358.55 million CLO offering.

Also, Apollo Credit Management (CLO) LLC intends to price $423 million of notes in a new deal.

In addition, Triumph Capital Advisors, LLC is preparing to print a CLO.

The CLO market is “definitely a lot stronger,” a source said.

Wells Fargo Securities LLC analysts said in a note on Thursday the improvement in CLOs may be a “fragile rally.”

“As April showers turn to May flowers, the CLO rally continues, but may be losing some momentum,” the analysts said. “We still see strong technical support for CLO mezz and equity, as well as for loans, and CLO valuations are still attractive to other assets. Our base case is that spreads retain a tighter bias, but within a reduced range. However, the rally appears fragile.”

Risks include market sentiment shifts due to central bank actions, currency movements or commodity price moves.

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