Primary action forecast; Sankaty plans €360 million CLO; CSAM markets $1.02 billion CLO

By Cristal Cody

Tupelo, Miss., Sept. 16 – CLO managers are expected to bring new issuance in the U.S. and European markets over the week, according to market sources on Tuesday.

“Last week, it was a little bit slower,” one source said. “We’ve got a lot of deals [in the pipeline]. People are rolling back into it.”

Sankaty Advisors LLC intends to price its first post-financial crisis European CLO transaction in Wednesday’s primary session, according to a market source.

Sankaty Advisors plans to offer €360 million of notes, upsized from €310 million, via Citigroup Global Markets Inc.

Sankaty has priced two dollar-denominated CLO transactions and refinanced two vintage U.S. CLOs in 2014. The Boston-based credit investment unit of Bain Capital LLC was most recently in the primary market on June 27 with the $415.25 million Avery Point V CLO Ltd./Avery Point V CLO Corp. deal.

At the end of the week, Credit Suisse Asset Management, LLC plans to price $1,022,250,000 of notes due 2025, according to a market source.

The Atrium XI/Atrium XI LLC CLO offering is expected to price on Friday and includes $602.25 million of class A-1 floating-rate notes (/AAA/); $10 million of class A-2 fixed-rate notes (/AAA/); $118.5 million of class B floating-rate notes (/AA/); $81 million of class C deferrable floating-rate notes (/A/); $52 million of class D deferrable floating-rate notes (/BBB/); $59.25 million of class E deferrable floating-rate notes; $11 million of class F deferrable floating-rate notes and $88.25 million of subordinated notes.

Credit Suisse Securities (USA) LLC is the placement agent.

The deal is Credit Suisse Asset Management’s second $1 billion-plus CLO transaction this year. The firm previously priced the $1,036,000,000 Madison Park Funding XIV Ltd./Madison Park Funding XIV LLC offering on July 7.

The New York-based affiliate of Credit Suisse Group AG has priced three CLO transactions and refinanced two vintage CLOs year to date.

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