CLO issuance picks up; Ares, Rockford, Onex price; BlackRock refinances; CLO spreads flat

By Cristal Cody

Tupelo, Miss., April 10 – The CLO primary market saw a pickup in volume with several issuers pricing new deals in the past week.

Ares CLO Management LLC led the pricing action with a new $817.6 million CLO.

Rockford Tower Capital Management, LLC priced $507 million of notes in an offering.

NYL Investors LLC came with a $408 million CLO.

Crestline Denali Capital, LP priced $409.44 million of notes in its deal.

Europe also saw a new CLO in the primary market. Onex Credit Partners, LLC priced €360.75 million of notes in the euro-denominated transaction.

Looking at refinancing action, BlackRock Financial Management, Inc. refinanced $476.75 million of notes from a 2014 CLO.

Refinancing volume continues to outpace new supply year to date.

New U.S. CLO issuance totals nearly $20 billion, compared to almost $59 billion of refinancing and repricing volume, according to a J.P. Morgan Securities LLC note released on Monday.

Euro-denominated CLO issuance totals €9.75 billion, which incudes €3.19 billion of new deals and €6.57 billion of refinancings and repricings.

“There is the risk of softness on surging refi/reset supply, but it is helpful to remember that with little actual new CLO creation the underlying technical is supportive,” JPMorgan analysts said in the note.

CLO secondary market activity was light over the past week with spreads ending Friday flat, according to a BofA Merrill Lynch note released on Monday.

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