American Capital, Resource Capital bring CLOs; CSAM markets deal; CIFC top U.S. manager

By Cristal Cody

Tupelo, Miss., Aug. 5 – New August CLO issuance includes deals from American Capital CLO Management, LLC and Resource Capital Corp., while another manager is in the pipeline, according to market sources on Wednesday.

American Capital CLO Management sold $510 million of notes in its second CLO transaction of the year.

Resource Capital announced that it priced a $312,937,000 static CRE CLO transaction, the firm’s fourth deal.

“We are again extremely pleased with the support that the institutional investment community has demonstrated in the credit quality of our loans through the successful execution of this transaction just two days after announcing its launch,” Dave Bloom, head of Resource Capital’s real estate, said in a news release.

Bloom said that with the transaction, Resource Capital has match-funded more than $1.4 billion of its self-originated whole loans in under 20 months.

CLO managers have priced more than $76 billion of CLOs in 150 deals year to date, according to data compiled by Prospect News.

Coming up in the deal pipeline, Credit Suisse Asset Management, LLC plans to price a $620 million CLO.

Moody’s Investors Service said in a news release that the rankings of the top 10 CLO managers globally is mostly unchanged from January.

In the U.S. market, CIFC Asset Management remains the leader by number of deals, with 30 CLOs under management, according to Moody’s.

“Credit Suisse Asset Management tops the league table by total assets under management, with $14.3 billion of CLO assets, followed by CIFC, while Carlyle and GSO/Blackstone are tied for the third spot,” Moody’s said.

American Capital prices

American Capital CLO Management priced $510 million of notes due Oct. 28, 2027 in a CLO deal, according to a market source.

ACAS CLO 2015-2, Ltd./ACAS CLO 2015-2 LLC sold $225 million of class A senior secured floating-rate notes at Libor plus 150 basis points at the top of the capital stack. The class A notes have a principal balance of $225 million but may be increased up to $325 million with a conversion option.

Wells Fargo Securities, LLC was the placement agent.

American Capital CLO Management will manage the CLO.

The CLO is non-callable until Oct. 28, 2017. The reinvestment period ends Oct. 28, 2019.

The transaction is backed mainly by broadly syndicated first-lien senior secured corporate loans.

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

American Capital CLO Management previously was in the primary market on April 15 with the $552.4 million ACAS CLO 2015-1, Ltd. deal.

The firm is a subsidiary of Bethesda, Md.-based private equity firm and asset manager American Capital Asset Management, LLC.

Resource Capital prices CLO

Resource Capital priced a $312,937,000 static CRE CLO transaction that is backed by self-originated commercial mortgage loans, according to the company and a market source on Wednesday.

Resource Capital Corp. 2015-CRE4, Ltd. priced $179,927,000 of class A floating-rate notes (Aaa) at Libor plus 140 bps and $43.81 million of class B floating-rate notes (Baa3) at Libor plus 300 bps.

The notes are due Aug. 17, 2032.

Resource Capital said in a news release that it will retain the $89.2 million of subordinated notes and preferred shares brought in the deal.

The class A and class B non-recourse, floating-rate notes were priced at a weighted average cost of Libor plus 171 bps, the company said.

Wells Fargo Securities was the deal structurer.

ParkBridge Lender Services LLC is the operator advisor to the asset pool.

Resource Real Estate Funding, Inc. originated all of the collateral loans. Resource Real Estate, Inc. will act as special servicer, and affiliate company RCC Real Estate, Inc. will act as advancing agent.

The notes are collateralized by floating-rate commercial real estate first mortgage loans originated by subsidiaries of the company.

The deal is Resource Capital’s fourth securitization.

The New York-based real estate investment trust originates, holds and manages commercial mortgage loans and other commercial real estate-related debt and equity investments.

CSAM in pipeline

Credit Suisse Asset Management is on the deal calendar with a $620 million CLO offering of notes due Oct. 20, 2026, according to a market source.

The Madison Park Funding XVIII Ltd./Madison Park Funding XVIII LLC deal includes $4 million of class X senior secured floating-rate notes (Aaa/AAA); $363 million of class A senior secured floating-rate notes (Aaa/AAA); $64 million of class B-1 senior secured floating-rate notes (Aa2); $20 million of class B-2 senior secured fixed-rate notes (Aa2); $39 million of class C senior secured deferrable floating-rate notes (A2); $34.5 million of class D senior secured deferrable floating-rate notes (Baa3); $31.5 million of class E senior secured deferrable floating-rate notes (Ba3) and $64 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

Credit Suisse Asset Management will manage the CLO.

The CLO is non-callable until Oct. 20, 2017. The reinvestment period ends Oct. 20, 2019.

The transaction is backed primarily by broadly syndicated senior secured corporate loans.

Credit Suisse Asset Management has priced two U.S. CLOs and refinanced one vintage CLO year to date.

The firm is a unit of Credit Suisse Group AG.

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