CreekSource offers $300 million in Mill Creek CLO II; deal volume light year to date

By Cristal Cody

Tupelo, Miss., Feb. 4 – New CLO primary action ahead includes a deal from CreekSource LLC, which intends to price $300 million of notes in the Mill Creek CLO II, Ltd./Mill Creek CLO II LLC transaction.

The last time the series name was used in a CLO deal was in 2011 when CreekSource affiliate 40|86 Advisors, Inc. priced the Mill Creek CLO, Ltd. transaction, a market source said.

Prudential Investment Management, Inc. also is in the deal pipeline with the $507.75 million Dryden 42 Senior Loan Fund/Dryden 42 Senior Loan Fund LLC transaction via BNP Paribas Securities Corp.

CLO volume remains light so far in 2016. CLO managers have priced $826 million of U.S. broadly syndicated CLOs and €414 million of euro-denominated CLOs year to date.

CreekSource intends to price $300 million of notes due April 15, 2028 in the new CLO offering, according to a market source.

The Mill Creek CLO II transaction includes $196.5 million of class A floating-rate notes (//AAA); $29.1 million of class B floating-rate notes (//AA); $12 million of class C floating-rate notes (//A); $18 million of class D floating-rate notes (//BBB-); $14.4 million of class E floating-rate notes and $30 million of subordinated notes.

Goldman Sachs & Co. is the placement agent for the Rule 144A-eligible deal.

CreekSource will manage the CLO.

The deal is backed entirely by first-lien senior secured loans.

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