Allianz sells $465 million CLO at 140 bps-490 bps spreads; $13 billion of CLOs in pipeline

By Cristal Cody

Tupelo, Miss., Oct. 17 - Allianz Global Investors U.S. LLC sold $465 million of notes in a new CLO offering with spreads in line with recent issuance in the market, according to informed sources on Thursday.

The West CLO 2013-1 Ltd./West CLO 2013-1 LLC priced with spreads that ranged from Libor plus 140 basis points at the top of the capital structure to Libor plus 490 bps at the bottom of the stack.

AAA-rated portions are holding at 135 bps to 145 bps area for new issuance, according to market sources.

A week ago, Eaton Vance Management sold $434,225,000 of notes due November 2024 in the Eaton Vance CLO 2013-1, Ltd., with spreads that included Libor plus 136 bps on the AAA slice and Libor plus 500 bps on the BB-rated tranche, a source said.

More than $61 billion of CLOs have priced year to date, according to market sources.

Looking ahead, the deal pipeline includes about $13 billion of broadly syndicated and middle market CLOs, sources said.

Allianz prices CLO

West CLO 2013-1 sold $252 million of class A-1A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 140 bps; $30 million of 3.3% class A-1B senior secured fixed-rate notes (Aaa/AAA/); $15 million of class A-2A senior secured floating-rate notes (/AA/) at Libor plus 200 bps; $44 million of 4.07% class A-2B senior secured fixed-rate notes (/AA/); $31 million of class B senior secured deferrable floating-rate notes (/A/) at Libor plus 290 bps; $23 million of class C senior secured deferrable floating-rate notes (/BBB/) at Libor plus 365 bps; $20.5 million of class D senior secured deferrable floating-rate notes (/BB/) at Libor plus 490 bps and $49.5 million of subordinated notes.

Citigroup Global Markets Inc. arranged the transaction.

The notes are due Nov. 7, 2025.

Allianz Global Investors, a subsidiary of Munich-based Allianz SE, will manage the CLO.

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