MidCap Financial Services prices third middle-market CLO; middle-market volume strong

By Cristal Cody

Tupelo, Miss., Aug. 23 – MidCap Financial Services Capital Management LLC priced a $353.3 million new middle-market CLO in the firm’s third offering of the year.

Middle-market volume already has surpassed the $8.25 billion total volume seen in 2016, according to BofA Merrill Lynch. More than $8.4 billion of middle-market CLOs have priced year to date. In the same period a year ago, $3.3 billion of middle-market CLOs had priced.

Middle-market CLOs make up about 6.8% of total outstanding U.S. CLO volume, according to Wels Fargo Securities, LLC.

CLO middle-market AAA spreads on average have priced in 2017 in the Libor plus 162 basis points area, about 50 bps tighter than a year ago, according to Wells Fargo.

MidCap prices $353.3 million

MidCap Financial Services Capital Management priced $353,325,000 of notes due Oct. 18, 2029 in its latest CLO deal, according to a market source.

Woodmont 2017-3 Trust LP/Woodmont Trust 2017-3 GP/Woodmont 2017-3 LLC sold $196 million of class A-1 floating-rate notes at a discount margin of Libor plus 172.5 bps.

Wells Fargo Securities LLC was the placement agent.

The CLO is backed primarily by middle-market senior secured loans.

Mid-Cap has priced three middle-market CLOs year to date.

The Bethesda, Md.-based firm is managed by Apollo Capital Management, LP, a subsidiary of Apollo Global Management LLC.

© 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.