THL offers $504.5 million CLO; nearly $50 billion CLOs sold in 2016; secondary volume thin

By Cristal Cody

Eureka Springs, Ark., Sept. 22 – THL Credit Advisors LLC is in the CLO deal pipeline as the primary calendar remains active in September.

THL Credit Advisors is expected to price a $504.5 million U.S. risk retention-compliant CLO, the firm’s second CLO offering year to date.

Also in the deal pipeline, Zais Group, LLC plans to price the $407.9 million Zais CLO 5 Ltd./Zais CLO 5 LLC transaction via J.P. Morgan Securities LLC.

Credit Suisse Asset Management, LLC also is offering $808,975,000 of notes in the U.S. risk retention-compliant Madison Park Funding XXII Ltd. deal. Wells Fargo Securities LLC is the placement agent.

Year to date, nearly $48 billion of CLOs have priced in 115 deals, according to Prospect News data.

Market participants forecast about $50 billion to $60 billion of U.S. CLO supply for the year.

Securitized secondary market activity has been light over the first part of the week.

On Wednesday, $133.47 million traded in 26 high-grade CBO/CDO/CLO issues and $114.69 million traded in 18 non-investment-grade CBO/CDO/CLO securities, according to Trace.

Secondary market volume on Tuesday included seven high-grade issues totaling $29.25 million and seven non-high-grade securities totaling $38.66 million.

Monday’s secondary trading volume totaled $35.81 million from nine high-grade CBO/CDO/CLO issues and $51.3 million from eight non-investment-grade CBO/CDO/CLO securities, according to Trace.

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