CSAM markets upsized $685.8 million deal; Mariner readies $502 million short-duration CLO

By Cristal Cody

Tupelo, Miss., Dec. 11 – CLO issuance is expected to remain steady through the end of the year with about $3 billion of transactions in the pipeline, according to market sources and data compiled by Prospect News.

Credit Suisse Asset Management, LLC upsized its previously announced CLO deal to a $685.8 million offering, according to a market source.

The AAA-rated tranche of notes is talked to price in the Libor plus 150 basis points area.

Also coming up, Mariner Investment Group, LLC plans to bring a $502 million short-duration CLO deal, a market source said.

CSAM to offer $685.8 million

Credit Suisse Asset Management plans to price $685.8 million of notes due Jan. 27, 2026 in the CLO offering, upsized from $610 million, according to a market source.

The Madison Park Funding XV Ltd./Madison Park Funding XV LLC deal includes $413.2 million of class A-1 senior secured floating-rate notes (Aaa/AAA/); $80.1 million of class A-2 senior secured floating-rate notes (/AA/); $34.7 million of class B-1 senior secured deferrable floating-rate notes (/A/); $20 million of class B-2 senior secured deferrable fixed-rate notes (/A/); $35 million of class C senior secured deferrable floating-rate notes (/BBB/); $40 million of class D senior secured deferrable floating-rate notes (Ba3) and $62.8 million of subordinated notes.

Citigroup Global Markets Inc. is the placement agent.

The CLO is non-callable until Jan. 27, 2017. The reinvestment period ends Jan. 27, 2019.

Year to date, Credit Suisse Asset Management has priced three CLO deals, including the $1 billion Madison Park Funding XIV Ltd./Madison Park Funding XIV LLC transaction on July 7.

The firm is a unit of Credit Suisse Group AG.

Mariner preps Elm CLO

Mariner Investment Group plans to price $502 million of notes due Jan. 17, 2023 in the Elm CLO 2014-1 Ltd./Elm CLO 2014-1 LLC transaction, according to a market source.

The deal includes $331 million of class A floating-rate notes (//AAA); $38.25 million of class B-1 floating-rate notes; $17 million of class B-2 fixed-rate notes; $26.25 million of class C floating-rate notes; $25.25 million of class D floating-rate notes; $21 million of class E floating-rate notes and $43.25 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

The CLO is non-callable for one year and does not have a reinvestment period.

Proceeds from the offering will be used to purchase assets to reach a target portfolio of about $500 million of mainly leveraged loans.

Mariner Investment is an alternative asset management firm based in New York City.

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