CSAM prices $615 million CLO; Sankaty brings $506.9 million; Crestline Denali in pipeline

By Cristal Cody

Tupelo, Miss., Feb. 24 – Credit Suisse Asset Management, LLC tapped the CLO market with a $615,025,000 deal, while Sankaty Advisors LLC brought a $506.9 million offering, according to market sources on Tuesday.

Coming up in the primary market, Crestline Denali Capital, LP intends to offer a $413.7 million transaction.

BofA Merrill Lynch CLO strategists expect as much as $75 billion to $90 billion in new CLO issuance over the year.

“True to form, although 2015 began slowly, the last several weeks have seen a flurry of activity,” BofA Merrill Lynch analysts said in a market note. “And with little primary loan issuance, CLOs have been a key buyer of loans in the secondary market.”

CSAM brings Madison Park XVI

Credit Suisse Asset Management priced $615,025,000 of notes due April 20, 2026 in the Madison Park Funding XVI Ltd./Madison Park Funding XVI LLC CLO offering, according to a market source.

The CLO sold $367,275,000 of class A-1 senior secured floating-rate notes at Libor plus 150 basis points at the top of the eight-tranche capital structure.

At the bottom of the stack, the CLO priced $12 million of class E deferrable floating-rate notes at Libor plus 590 bps.

BofA Merrill Lynch was the placement agent.

Credit Suisse Asset Management will manage the CLO.

In 2014, Credit Suisse Asset Management brought four CLO deals, including the $1 billion Madison Park Funding XIV Ltd./Madison Park Funding XIV LLC transaction.

The firm is a unit of Credit Suisse Group AG.

Sankaty prices $506.9 million

CLO manager Sankaty Advisors priced a $506.9 million seven-part CLO transaction via Citigroup Global Markets Inc., according to a market source.

Race Point IX CLO, Ltd. sold $323.1 million of class A-1 floating-rate notes at Libor plus 151 bps at the top of the capital stack.

The CLO brought $6.3 million of class E floating-rate notes at Libor plus 585 bps in the lower mezzanine tranches.

Sankaty Advisors priced two U.S. CLO offerings and one euro-denominated deal in 2014.

The credit investment unit of Bain Capital LLC is based in Boston.

Crestline preps CLO

Crestline Denali Capital intends to price $413.7 million of notes in the Denali Capital CLO XI, Ltd./Denali Capital CLO XI, LLC transaction, according to a market source.

The Rule 144A-eligible deal includes $253.5 million of class A-1 floating-rate notes (//AAA); $41.22 million of class A-2 floating-rate notes; $27.41 million of class B floating-rate notes; $24.6 million of class C floating-rate notes; $21.96 million of class D floating-rate notes; $7.91 million of class E floating-rate notes and $37.1 million of subordinated notes.

Natixis Securities Americas LLC is the placement agent.

Crestline Denali Capital will manage the CLO.

The notes are due March 20, 2027.

Crestline Denali Capital was formed in 2014 by alternative investment manager Crestline Investors, Inc. of Fort Worth, Texas, and Denali Capital LLC, an Oak Brook, Ill.-based commercial loan asset management firm.

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