Redding Ridge offers $505.1 million, manager’s second CLO of year; demand tops supply

By Cristal Cody

Tupelo, Miss., Sept. 11 – CLO primary action is picking back up with several deals expected to price in September.

Redding Ridge Asset Management, LLC is returning to the primary market for the second time this year with a new CLO deal. The company created in 2016 plans to price $505.1 million of notes in the offering.

CLO primary action thinned in August but “gathered steam” by the end of the month, according to a BofA Merrill Lynch research report on Tuesday.

While more than $90 billion of new CLOs have priced year to date, demand has outweighed supply by $427 million as of the week ended Aug. 31, the note said.

In its deal, Redding Ridge Asset Management plans to price $505.1 million of notes due Oct. 15, 2031 in the transaction, according to a market source.

The RR 5 Ltd./RR 5 LLC deal includes $4.6 million of class X floating-rate notes (AAA/); $300 million of class A-1 floating-rate notes (AAA/); $52.5 million of class A-2 floating-rate notes (AA/); $54.5 million of class B deferrable floating-rate notes (A/); $32 million of class C deferrable floating-rate notes (BBB-/); $18.5 million of class D deferrable floating-rate notes (BB-/); and $43 million of subordinated notes.

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

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