Voya Alternative prices €405.18 million CLO; new euro, dollar volume forecast to slow

By Cristal Cody

Tupelo, Miss., May 6 – Voya Alternative Asset Management LLC priced €405.18 million of notes in the manager’s second broadly syndicated CLO offering of the year.

Voya was last in the primary market on Feb. 13 with a $398.7 million dollar-denominated CLO.

The CLO manager issued its first euro offering, the €356.3 million Voya Euro CLO I DAC offering, on May 15, 2018.

About €10 billion of euro-denominated CLOs have priced year to date, according to market sources.

The space is predicted to see a total of €25 billion of issuance in 2019, according to a BofA Merrill Lynch research note released on Monday.

While issuance was strong in the first quarter, the pipeline is expected to slow over the second quarter, the note said.

“We think some of the deals that have priced so far this year likely had warehouses opened when loan and CLO pricing conditions were much more favorable in the first three quarters of 2018,” the note said. “With reports suggesting a slower pace of warehouse openings so far in 2019, we think the pace of CLO issuance is likely to ease in Q2 2019.”

Also, in the dollar-denominated market, the “forward pipeline is relatively light, with fewer new warehouses opened this year relative to 2018 and 2017,” according to the BofA Merrill Lynch note. “This should equate to moderation in new issue supply in the coming months and would balance out potentially higher refi supply.”

About $40 billion of dollar-denominated CLOs have priced year to date.

The dollar-denominated primary market is projected to post $105 billion of volume for the year, according to the note.

Voya prices CLO

Voya Alternative Asset Management priced €405,175,000 of notes due July 15, 2032 in the euro-denominated transaction, according to market sources.

At the top of the capital structure, Voya Euro CLO II DAC sold €2.25 million of class X senior secured floating-rate notes at Euribor plus 55 basis points, €248 million of class A senior secured floating-rate notes at Euribor plus 114 bps, €28,275,000 of class B-1 senior secured floating-rate notes at Euribor plus 185 bps and €10 million of 2.7% class B-2 senior secured fixed-rate notes.

Citigroup Global Markets Ltd. was the placement agent.

The deal is collateralized primarily by senior secured obligations.

Voya Alternative Asset Management is an affiliate of New York City-based Voya Investment Management LLC.

© 2015 Prospect News.
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