LCM, Ares CLOs price; BlackRock refinances; September refinancing activity strong

By Cristal Cody

Eureka Springs, Ark., Sept. 19 – New CLO pricing action includes deals from LCM Asset Management LLC and Ares Management LP.

LCM Asset Management priced $448.6 million of notes at par in the deal.

Ares Management tapped the primary market with a $707 million CLO offering.

Also, BlackRock Financial Management, Inc. refinanced $612 million of notes at par in a vintage 2012 CLO.

“Refinancing activity remains elevated across leveraged finance and CLO markets,” J.P. Morgan Securities LLC analysts said in a note. “So far in September, refinancing activity has accounted for the highest percent of total monthly new issue volume in the loan market and second highest in the CLO market.”

Year to date, about $5.5 billion of CLOs have been refinanced, JPMorgan said.

In the secondary market, BWIC volume totaled $1.1 billion over the previous week, according to a BofA Merrill Lynch note.

“Spreads remain relatively stable, with some tightening in the less liquid tranches at the bottom of the capital stack,” the analysts said.

LCM Asset Management priced $448.6 million of notes due Oct. 15, 2028 at par in the LCM XXII LP/LCM XXII LLC offering, according to a market source.

The CLO sold $277.2 million of class A-1 floating-rate notes at Libor plus 148 basis points in the senior tranche.

Natixis Securities Americas LLC was the placement agent.

The deal is collateralized primarily by first-lien senior secured loans.

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