TPG prices; Voya brings $407.25 million; Palmer Square closes firm’s second static CLO

By Cristal Cody

Eureka Springs, Ark., June 14 – Details emerged on two new CLO deals priced in the U.S. primary market.

Voya Alternative Asset Management LLC printed a $407.25 million CLO transaction.

TPG Institutional Credit Partners, LLC priced a $410.25 million deal.

In other market activity, Palmer Square Capital Management LLC announced it closed on its second static CLO transaction of the year.

Palmer Square Capital sold $200.78 million of notes due June 21, 2024 in the Palmer Square Loan Funding 2016-2 Ltd./Palmer Square Loan Funding 2016-2 LLC offering that priced on April 26 and closed on June 8. J.P. Morgan Securities LLC was the placement agent.

“We are pleased to have been able to bring the static ABS structure and introduce it to the CLO market,” Christopher D. Long, president of Palmer Square Capital Management, said in a release. “Investors have appreciated the opportunity to invest in a short duration structure in which the debt is floating rate and the portfolio and structure are identified and easier to analyze.”

The deal is Palmer Square Capital Management’s seventh total CLO transaction.

The Leawood, Kan.-based subsidiary of Montage Investments priced three CLOs in 2015.

“Similar to Palmer Square’s five recent transactions, this CLO is designed to invest primarily in institutional senior secured bank loans,” the firm said in the release. “The most significant difference, though, is that the static deals do not have a reinvestment period, are fully identified portfolios at closing, and are immediately amortizing or short duration.”

As of June 1, Palmer Square managed about $3.7 billion in assets.

TPG raises $410.25 million

TPG Institutional Credit Partners priced $410.25 million in its first CLO offering of 2016, according to a market source.

The TICP CLO V Ltd. transaction sold $240 million of class A floating-rate notes at Libor plus 164 basis points at the top of the capital structure.

BofA Merrill Lynch was the placement agent.

TPG priced one CLO deal in 2015.

The private equity firm is based in Fort Worth, Texas.

Voya prices 2016-2 CLO

Voya Alternative Asset Management sold $407.25 million of notes in the Voya CLO 2016-2, Ltd./Voya CLO 2016-2 LLC offering, according to a market source.

Voya CLO 2016-2 priced $259 million of class A-1 floating-rate notes at Libor plus 154 bps in the senior tranche.

Citigroup Global Markets Inc. was the placement agent.

Voya Alternative Asset Management, an affiliate of New York City-based Voya Investment Management LLC, has priced two CLO deals year to date.

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