Carlson Capital taps market; PineBridge raises €335.05 million; Babson refinances CLO

By Cristal Cody

Tupelo, Miss., June 11 – Carlson Capital, LP returned to the CLO primary market for the first time since 2013 with a $410.6 transaction, according to a market source on Thursday.

In other market action, European CLO volume rose with a €335.05 million offering from PineBridge Investments LLC.

In the refinancing space, Babson Capital Management LLC refinanced $369 million of notes in a vintage 2012 CLO deal.

More than $71 billion of U.S. dollar- and euro-denominated CLOs have priced year to date, according to Prospect News data.

Carlson Capital prices CLO

Carlson Capital priced $410.6 million of notes due July 15, 2027 in the Cathedral Lake II Ltd./Cathedral Lake II Corp. transaction, according to a market source.

The CLO sold $3.75 million of class A-X floating-rate notes at Libor plus 130 basis points and $257 million of class A-1 floating-rate notes at Libor plus 159 bps at the top of the capital structure.

Jeffries LLC was the placement agent.

Carlson Capital will manage the CLO, which is backed primarily by broadly syndicated senior secured corporate loans.

The CLO has a non-call period that ends July 15, 2017. The reinvestment period ends July 15, 2019.

Carlson Capital was last in the primary market in 2013 with the $363 million Cathedral Lake CLO 2013 Ltd./Cathedral Lake CLO 2013 Corp. transaction.

The alternative asset management firm is based in Dallas.

PineBridge prices CLO

PineBridge Investments priced €335.05 million of notes in the Euro-Galaxy IV CLO Ltd./Euro-Galaxy IV CLO LLC deal, a market source said.

The CLO sold €66 million of class A-1D floating-rate notes at Euribor plus 120 bps in the senior slice.

Goldman Sachs & Co. was the placement agent.

PineBridge Investments will manage the CLO.

PineBridge Investments has priced three CLOs in 2015, including the $555.5 million Galaxy XX CLO Ltd./Galaxy XX CLO LLC offering on May 19.

The New York City-based asset management firm brought two CLOs in 2014.

Babson refinances

Babson Capital Management refinanced $369 million of notes due May 15, 2023 in the Babson CLO Ltd. 2012-II offering, according to details from a market source.

At the top of the capital structure, Babson CLO sold $255 million of class A-1R senior secured floating-rate notes at Libor plus 124 bps, tighter than where the notes originally priced at Libor plus 140 bps.

Citigroup Global Markets Inc. was the refinancing agent.

Babson Capital Management is the CLO manager.

Proceeds from the deal were used to redeem the original notes.

Babson previously priced the $512.13 million Babson CLO 2015-I Ltd./Babson CLO 2015-I LLC transaction on April 1.

The Springfield, Mass.-based global asset management firm brought five CLO deals in 2014.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.