Babson raises €409.8 million; TIAA CLO I prices; U.S. deals show ‘signs of tightening’

By Cristal Cody

Eureka Springs, Ark., June 8 – June primary action looks poised to stay on track with the volume seen over the past three months, with four new deals already priced in the U.S and European markets in the first week, according to market sources on Wednesday.

Babson Capital Management (UK) Ltd. priced €409.8 million in its first euro-denominated CLO offering of the year.

KKR Credit Advisors (Ireland) sold €462.8 million of notes due July 15, 2029 in the Avoca CLO XVI DAC deal, as previously reported, on Friday.

Details also emerged for Teachers Advisors Inc.’s new $455,545,000 debut CLO offering.

In other new U.S. issuance, Voya Alternative Asset Management LLC priced $407 million of notes in the Voya CLO 2016-2, Ltd. transaction via Citigroup Global Markets Inc., a source said. The deal has a five-year reinvestment period. Final pricing details were not available by press time.

Issuance is keeping “at the pace we have seen since March of roughly $5 billion a month,” Deutsche Bank Securities Inc. analyst Bjarni Torfason said in a note on Wednesday. “The Global ABS conference in Barcelona could slow things down next week but could push issuers to price their deals this week before the conference starts.”

In the U.S. primary market, pricings are “showing some signs of tightening at the more senior part of the capital stack,” with one deal achieving the tightest AAA print of the year at Libor plus 153 basis points, Torfason said.

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