Fortress brings CLO AAAs at Libor plus 125 bps; Carlyle Investment Management in pipeline

By Cristal Cody

Tupelo, Miss., June 25 – Fortress Investment Group LLC tapped the CLO primary market with a new $408 million deal.

The CLO placed the AAA rated notes at Libor plus 125 basis points, on the tight side of recent issuance.

Coming up in the deal pipeline, Carlyle Investment Management LLC plans to price a $513 million CLO.

Fortress Credit IV CLO prices

Fortress Investment Group priced $408 million of notes due July 17, 2023 in a CLO transaction, according to a market source.

In the senior tranche, Fortress Credit Funding IV Ltd./Fortress Credit Investments IV LLC sold $220 million of class A senior secured floating-rate notes at Libor plus 125 bps.

BofA Merrill Lynch was the placement agent.

Fortress Credit Investment IV CM LLC will manage the CLO.

The CLO is non-callable until July 17, 2017.

The deal is backed primarily by a static pool of broadly syndicated senior secured corporate loans.

Fortress Investment Group has priced two new CLOs and refinanced two vintage 2012 deals year to date.

The New York City-based investment firm brought two CLO transactions in 2014.

Carlyle offers $513 million

Carlyle Investment Management plans to price $513 million of notes due 2028 in a CLO transaction, according to a market source.

The Carlyle Global Market Strategies CLO 2015-3, Ltd./Carlyle Global Market Strategies CLO 2015-3 LLC deal includes $100 million of class A-1 floating-rate loans (//AAA); $215 million of class A-1 floating-rate notes (//AAA); $61.7 million of class A-2 floating-rate notes; $23.9 million of class B floating-rate notes; $33.9 million of class C floating-rate notes; $26.5 million of class D floating-rate notes; $9 million of class E floating-rate notes and $43 million of subordinated notes.

JPMorgan Securities LLC is the placement agent.

Carlyle Investment Management will manage the CLO.

The CLO will have a three-year non-call period and a five-year reinvestment period.

The deal is backed primarily by first lien senior secured corporate loans.

Proceeds from the offering will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.

Carlyle Investment Management has priced two U.S. broadly syndicated CLO deals and one middle-market CLO offering in 2015.

The asset management firm is an affiliate of Washington, D.C.-based Carlyle Group.

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