CLO tally climbs to $108 billion; Ballyrock sells $409 million CLO, AAAs at 148 bps spread

By Cristal Cody

Tupelo, Miss., Oct. 23 – More than $108 billion of CLOs have priced year to date following a $409 million transaction from Ballyrock Investment Advisors LLC, according to data compiled by Prospect News and a market source.

Boston-based Ballyrock Investment Advisors sold $409,175,000 of notes due Nov. 15, 2026 in the deal, a source said.

Ballyrock CLO 2014-1 Ltd./Ballyrock CLO 2014-1 LLC priced $251 million of class A-1 senior secured floating-rate notes at Libor plus 148 basis points at the top of the capital structure.

The CLO sold $23 million of class D senior secured deferrable floating-rate notes at Libor plus 500 bps at the bottom of the capital stack.

Citigroup Global Markets Inc. was the placement agent.

CLO issuance over the remainder of the year and in 2015 is expected to be brisk following the release of the finalized risk retention rules, market insiders report.

The Federal Deposit Insurance Corp. on Tuesday released the final rules that require CLO managers to retain 5% capital of new deals starting in October 2016.

CLOs issued before Oct. 21, 2016 will be grandfathered under the requirement.

The 5% risk retention requirement translates to $50 million for every $1 billion of CLO assets under management issued after the effective date of the rule, Fitch Ratings said in a report on Thursday.

© 2015 Prospect News.
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