End-of-month action forecast; Golub Capital refinances CLO; AAA spreads unchanged

By Cristal Cody

Tupelo, Miss., July 21 – New issuance in the collateralized loan obligation market is expected to pick up for the remainder of the month with more than $7 billion of deals in the near-term pipeline, according to market sources.

Nearly $80 billion of CLO transactions have priced year to date, according to data compiled by Prospect News.

ICG Debt Advisors LLC brought the $417 million ICG US CLO 2014-2, Ltd. transaction on Friday via Morgan Stanley, according to a market source.

Final pricing details were not available by press time.

Refinancing vintage CLOs remains on the rise with Golub Capital the latest CLO manager in the space, a source said.

The New York-based middle market lender refinanced $257.25 million of notes in the Golub Capital Partners CLO 10, Ltd./Golub Capital Partners CLO 10, LLC deal first priced in 2011. The AAA tranche was refinanced at Libor plus 120 basis points.

J.P. Morgan Securities LLC was the refinancing agent.

CLO managers including Prudential Investment Management, Inc., Octagon Credit Investors, LLC, Invesco, Ltd., Sankaty Advisors LLC and Apollo Global Management, LLC have refinanced CLOs this year.

In the CLO secondary market, U.S. AAA spreads are flat at Libor plus 147 bps, an informed source said.

Euro CLO AAA-rated notes have tightened about 2 bps to the Euribor plus 138 bps area, according to the market source.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.