Shenkman sells $552.5 million; CSAM eyes $1 billion deal; Octagon preps $616.4 million CLO

By Cristal Cody

Tupelo, Miss., July 2 – Shenkman Capital Management, Inc. opened the July primary market with a $552.5 million collateralized loan obligation deal, according to a source on Wednesday.

Adams Mill CLO Ltd./Adams Mill CLO LLC placed the AAA-rated tranche of notes at Libor plus 148 basis points.

The CLO market looks set to continue the heavy pace of issuance with a $1,036,000,000 deal in the pipeline from Credit Suisse Asset Management, LLC, according to a market source.

Coming up, Octagon Credit Investors, LLC intends to bring a $616.4 million CLO offering, a source said.

“It just remains on fire,” one informed source said of the CLO market. “The size of the deals keeps increasing.”

Market participants predict as much as $100 billion of total CLO issuance for the year. More than $14 billion of CLOs priced in the U.S. and European primary markets in June.

Shenkman Capital Management priced $552.5 million of notes due July 15, 2026 in the CLO offering, according to a market source.

Nomura Securities International, Inc. arranged the offering.

Shenkman Capital Management will manage the CLO, which is backed primarily by first-lien senior secured loans.

Proceeds from the transaction will be used to purchase about a $535 million portfolio of mostly senior secured leveraged loans.

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