Blackstone/GSO, Palmer Square, Zais, Highbridge price; Trinitas preps CLO; AAAs flat

By Cristal Cody

Eureka Springs, Ark., May 2 – April ended with more of a bang in the CLO primary markets, while May is set to stay busy with several deals in the pipeline, according to sources on Monday.

Details emerged on Blackstone/GSO Debt Funds Management Europe Ltd.’s €558.15 million Elm Park CLO Designated Activity Co. transaction.

In the U.S. primary market, Palmer Square Capital Management LLC brought a $200.78 million new deal.

Zais Group LLC sold a $280.7 million CLO.

Prudential Investment Management, Inc. printed a $401.75 million deal.

Highbridge Principal Strategies LLC priced a $502.55 million CLO transaction.

The week saw about $2.5 billion in new U.S. CLO issuance, the highest weekly total since $3 billion priced in the week ended Dec. 11, 2015, according to a J.P. Morgan Securities LLC note.

Looking ahead to new issuance, Triumph Capital Advisors, LLC affiliate Trinitas Capital Management LLC plans to price a $406.64 million CLO.

“New issue CLO spreads continue to grind tighter with a handful of AAAs reportedly as tight as L+156 [basis points],” JPMorgan analysts said in the report.

In the secondary market, most of the capital stack was flat over the past week, according to the note.

CLO 3.0 AAA spreads were unchanged at Libor plus 157 bps. BBBs continue to tighten and improved another 10 bps over the past week to Libor plus 525 bps.

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