Pricing emerges for CLOs managed by Barings, Carlyle Euro, Voya

By Rebecca Melvin

New York, March 9 – Pricing emerged for three collateralized loan obligations on Friday, with pricing on spreads across the stack tighter for transactions managed by Barings LLC and CELF Advisors LLP but mostly wider for the CLO priced by Voya Alternative Asset Management LLC.

Barings’s $562.8 million Barings CLO Ltd. 2018-I and Barings CLO 2018-I LLC consists of notes due April 15, 2031. At the top of the stack, the Barings CLO sold $357.5 million of class A-1 senior secured floating-rate notes at Libor plus 95 basis points. That was significantly tighter than the $280.9 million of class A-1 senior secured floating-rate notes priced at Libor plus 158 bps in December.

The Barings deal also included $60.5 million of class A-2 senior secured floating-rate notes priced at Libor plus 135 bps, $33 million of class B secured deferrable floating-rate notes at Libor plus 175 bps, $33 million of class C secured deferrable mezzanine floating-rate notes at Libor plus 260 bps, $22 million of class D secured deferrable mezzanine floating-rate notes at Libor plus 550 bps and $56.8 million of subordinated notes.

Also on Friday pricing emerged for the Carlyle Euro CLO 2018-1 DAC managed by CELF Advisors LLP, which priced €413.5 million of notes due April 15, 2031 in a new euro-denominated collateralized loan obligation offering.

It sold €226.80 million of class A-1 senior secured floating-rate notes at Euribor plus 71 basis points; which was a tighter spread compared to the Carlyle Euro CLO, which sported a spread of Libor plus 83 bps at the top of the stack, in June 2017.

The new Carlyle Euro CLO also had €42.80 million of class A-2A senior secured floating-rate notes at Euribor plus 105 bps; €20 million of class A-2B senior secured fixed rate notes at 2%; €26.80 million of class B senior secured deferrable floating-rate notes at Euribor plus 155 bps; €21.20 million of class C senior secured deferrable floating-rate notes at Euribor plus 240 bps; €20.8 million of class D senior secured deferrable floating-rate notes at Euribor plus 435 bps; €12 million of class E senior secured deferrable floating-rate notes at Euribor plus 590 bps and €43.1 million of subordinated notes.

But pricing of the Voya CLO was wider on several of the tranches in the transaction priced on Thursday.

At the top of the stack the $357 million of class A-1 floating-rate notes that priced in December at a spread of Libor plus 113 basis points for the Voya CLO 2017-4, Ltd./Voya CLO 2017-4 LLC was wider than the new Voya CLO 2018-1, Ltd./Voya CLO 2018-1 LLC class A-1 floating-rate notes that priced at Libor plus 95 basis points. But the older class A-2 priced with a spread of Libor plus 125 bps versus the new $67.3 million of class A-2 floating-rate notes at Libor plus 130 bps.

In addition the older class B tranche priced at a spread of Libor plus 145 bps, compared to the new class B deferrable floating-rate notes that priced at Libor plus 180 bps.

J.P. Morgan Securities LLC was the arranger of the new Voya CLO. Voya priced four new CLOs and refinanced two vintage CLOs in 2017.

The firm is an affiliate of New York City-based Voya Investment Management LLC.

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