Zais prices $408.5 million CLO; Carlson Capital taps primary; secondary volume rises

By Cristal Cody

Eureka Springs, Ark., Oct. 6 – Zais Group, LLC and Carlson Capital, LP priced new CLOs, while secondary market volume improved mid-week.

Zais Group placed a $408.5 million CLO, its second deal of the year.

Carlson Capital brought a $404.15 million CLO in its first offering of the year.

Securitized secondary volume rose in mid-week trading to $199.3 million of high-grade CBO/CDO/CLO issues and $179.5 million of non-investment-grade CBO/CDO/CLO securities on Wednesday, according to Trace.

On Tuesday, $51.53 million of investment-grade CBO/CDO/CLO issues and $74.9 million of non-investment-grade CBO/CDO/CLO securities were traded.

During Monday’s session, secondary market volume included $35.6 million of high-grade CBO/CDO/CLO issues and $86.55 million of non-investment-grade CBO/CDO/CLO securities.

Zais brings CLO 5

Zais Group priced $408.5 million of notes due Oct. 25, 2028 in the new CLO, according to a market source.

Zais CLO 5 Ltd./Zais CLO 5 LLC sold $260 million of class A-1 senior secured floating-rate notes (Aaa) at Libor plus 153 basis points in the AAA-rated tranche.

J.P. Morgan Securities LLC was the placement agent.

Zais Leveraged Loan Master Manager, LLC will manage the CLO.

The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Zais Group has priced two CLOs year to date and brought one CLO offering to market in 2015.

The structured credit asset management firm is based in Red Bank, N.J.

Carlson Capital prices

Carlson Capital priced $404.15 million of notes due Oct. 17, 2028 in the Cathedral Lake IV Ltd./Cathedral Lake IV LLC transaction, according to a market source.

The CLO sold $239 million of class A floating-rate notes (/AAA/) at Libor plus 165 bps in the senior tranche.

Jeffries LLC was the placement agent.

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

Carlson Capital was last in the primary market in 2015 with two CLO deals.

The alternative asset management firm is based in Dallas.

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