CLO primary slows; BlueMountain Capital, Black Diamond Capital join deal pipeline

By Cristal Cody

Tupelo, Miss., Aug. 14 – Primary activity in the collateralized loan obligation market is expected to be steady but likely will wane late in the month, according to market sources on Thursday.

“It’s slow,” one source said.

The year has seen more than $93 billion of U.S. and European CLOs price to date, according to data compiled by Prospect News.

CLO managers have priced nearly $4 billion of transactions in August, data shows.

Market analysts forecast up to $120 billion of total issuance for the year.

Coming up in new supply, BlueMountain Capital Management LLC firmed details for its previously announced third deal of the year.

The New York City-based private investment firm plans to price about $510 million of notes in the BlueMountain CLO 2014-3 Ltd./BlueMountain CLO 2014-3 LLC offering, according to a market source.

Citigroup Global Markets Inc. is the placement agent.

Also in the pipeline, Black Diamond Capital Management, LLC intends to bring $411.75 million of notes in a CLO offering via J.P. Morgan Securities LLC, according to a market source.

Black Diamond CLO 2014-1 Adviser, LLC, an affiliate of Black Diamond Capital Management, will manage the Black Diamond CLO 2014-1, Ltd. vehicle.

Black Diamond Capital Management was previously in the primary market in December with the $412.9 million Black Diamond CLO 2013-1, Ltd./Black Diamond CLO 2013-1, LLC transaction.

The alternative asset management firm manages assets that include about $4.8 billion of CLOs.

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