| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Conning & Co. > News item |
Octagon sells $560.96 million in its first new CLO of year; secondary pace thin; AAAs flat
By Cristal Cody
Tupelo, Miss., June 5 – Octagon Credit Investors, LLC returned to the CLO primary market to price its first new CLO deal following five refinancing transactions to date in 2017.
Octagon sold $560.96 million of notes in eight tranches in the offering.
New CLO pricing action is picking up in June in the U.S. and European primary markets following a slowdown in refinancing activity with the “April payment date behind us,” according to a BofA Merrill Lynch report released on Monday.
Secondary activity has been light with about $225 million of BWIC volume seen over the past week, BofA Merrill Lynch analysts said in the note.
“Spread levels remained steady across the capital stack with limited selling,” the analysts said. “Seasoned mezzanine tranches were especially popular among fast-money accounts, driving BB and single-B spreads 25 [basis points] tighter on the week.”
CLO AAAs ended Friday flat on the week at Libor plus 115 bps, while B spreads were 25 bps tighter on the week at Libor plus 775 bps.
Octagon brings 31 CLO
Octagon Credit Investors priced $560.96 million of notes due July 20, 2030 in the Octagon Investment Partners 31, Ltd./Octagon Investment Partners 31, LLC transaction, according to a market source.
The CLO sold $356.4 million of class A floating-rate notes at Libor plus 121 bps in the senior tranche.
Wells Fargo Securities LLC arranged the offering.
Proceeds will be used to purchase a portfolio of about $550 million of mostly senior secured leveraged loans.
Octagon Credit Investors has priced one new CLO and refinanced five vintage CLOs year to date.
The CLO manager priced three new CLOs and refinanced one CLO in 2016.
The New York-based credit investment firm is a subsidiary of Conning & Co.
© 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.