American Money prices $302.64 million CLO; Golub brings first TALF CLO; secondary thins

By Cristal Cody

Tupelo, Miss., Oct. 26 – Pricing action in the CLO market remains steady in October, while secondary volume is beginning to decline.

American Money Management Corp. priced a $302.64 million broadly syndicated CLO in its first deal of the year.

Nearly $70 billion of new CLOs have priced year to date, sources report.

Meanwhile, GC Investment Management LLC’s $677.53 million middle-market CLO, Golub Capital Partners TALF 2020-1, LP/Golub Capital Partners TALF 2020-1, LLC, that priced last week marks the first TALF issuance in the CLO space, according to a BofA Securities, Inc. research note released on Monday.

The CLO sold $409.5 million of class A floating-rate notes at Libor plus 195 basis points in the senior tranche.

SG Americas Securities LLC was the placement agent.

The notes are backed primarily by a static portfolio of middle-market senior secured corporate loans.

Meanwhile, secondary volume is thinning ahead of the U.S. presidential election.

BWIC volume declined to $454 million last week from $889 million in the week prior, according to the BofA report.

CLO spreads were mostly flat last week. AAAs headed out on Friday unchanged on the week at Libor plus 145 bps. AA tranches were the lone exception, softening an average 5 bps to Libor plus 205 bps.

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