Alcentra sells $403.75 million CLO; Commerzbank, Brigade, Churchill price; mezzanines firm

By Cristal Cody

Tupelo, Miss., Dec. 12 – In new dollar-denominated CLO issuance, Alcentra NY, LLC sold $403.75 million of notes in the manager’s second deal of the year.

Elsewhere in the European primary market, Commerzbank AG, London Branch closed Thursday on a new €362.36 million CLO in the manager’s first offering of the year.

Brigade Capital Europe Management, LLP also closed on a new €415.1 million CLO offering, the manager’s first euro-denominated deal this year.

In the middle-market space, Churchill Asset Management LLC closed Thursday on a new $356.65 million CLO transaction.

In other market activity, CLO investors were mostly “bullish” on the market at the Opal Group CLO industry conference in California held earlier in the week, according to a Wells Fargo Securities LLC research note on Thursday.

Sentiment for lower CLO mezzanine tranches also has “shifted nearly 180 degrees since the depths of October/early November,” according to the note.

Benchmark BB spreads are in the Libor plus 700 basis points to 725 bps range – about 75 bps to 100 bps tighter than the levels of late October, the note said.

BBB spreads are about 35 bps tighter over the same period.

“We believe the rally was driven by CLOs reaching historically wide levels compared to corporates, which drew in non-traditional CLO investors,” the analysts said.

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