Ares markets $1.26 billion CLO deal; primary thins; deal issuance holds above 2013 tally

By Cristal Cody

Tupelo, Miss., July 24 – Ares Management LLC plans to be in the primary market with a $1.26 billion collateralized loan obligation deal, according to a market source on Thursday.

The Ares XXXI CLO Ltd./Ares XXXI CLO LLC vehicle is expected to offer notes in six tranches, with the mezzanine tranches set to price with a fixed rate.

J.P. Morgan Securities LLC is the placement agent.

The deal will the year’s fourth U.S. $1 billion-plus CLO offering.

Earlier in July, Credit Suisse Asset Management, LLC priced the $1,036,000,000 Madison Park Funding XIV Ltd./Madison Park Funding XIV LLC transaction.

In May, Onex Credit Partners LLC brought the $1,001,750,000 OCP CLO 2014-6 Ltd./OCP CLO 2014-6 Corp. offering. Apollo Credit Management (CLO) LLC was in the market in June with the $1,542,100,000 ALM XIV, Ltd. deal.

In the European primary market in May, Spanish global bank Banco Santander SA sold €1.86 billion of notes in the FTA Pymes Santander 8 CLO transaction.

More than $7 billion of CLOs have priced over the month, according to data compiled by Prospect News.

The primary market has thinned compared to the $17.5 billion brought in June in the year’s highest month to date, but year-to-date issuance remains above 2013 levels, according to data and market sources.

CLO issuance year to date has climbed to more than $80 billion, data shows.

Market analysts forecast about $100 billion to $120 billion of total issuance for the year.

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