CSAM, Neuberger Berman, Crestline Denali price CLOs; secondary CLO spreads firm

By Cristal Cody

Tupelo, Miss., Jan. 29 – New CLOs are starting to price in the primary market after managers refinanced several vintage CLOs in January.

Credit Suisse Asset Management, LLC tapped the primary market with a new $811.1 million CLO.

Neuberger Berman Loan Advisers LLC sold $510.8 million of notes in its transaction.

Crestline Denali Capital, LP came with a $409.6 million CLO in one of the first new transactions of the year.

More than $2 billion of new CLOs have priced year to date, while more than $9 billion of vintage CLOs have been refinanced and/or reset, according to a BofA Merrill Lynch research note on Monday.

New CLO AAAs tightened to as much as Libor plus 103 basis points this month for a new post-financial crisis print, BofA Merrill Lynch analysts said in a separate CLO research note on Friday.

“We expect new-issue deals to continue testing new tights in future weeks,” the analysts said.

Spreads also tightened across the capital structure in the secondary market, according to the note.

“The Street also seemed active in adding to their inventory given strong overall demand for U.S. CLOs,” the analysts said. “Having somewhat lagged the recent tightening, single-B spreads attracted some fast-money interest this week.”

CLO AAAs were 2 bps tighter going out on Friday at Libor plus 93 bps.

BBs firmed 10 bps and Bs tightened 25 bps on the week to 465 bps and 700 bps, respectively.

The remaining tranches were flat on the week.

CSAM prints XXVII CLO

Credit Suisse Asset Management priced $811.1 million of notes due April 2030 in its new CLO deal via BofA Merrill Lynch, according to market sources.

Madison Park Funding XXVII Ltd./Madison Park Funding XXVII LLC sold $468 million of class A-1a floating-rate notes (Aaa/AAA) at a discount margin of Libor plus 103 bps at the top of the capital structure.

Credit Suisse Asset Management, a unit of Credit Suisse Group AG, priced one new U.S. CLO and refinanced seven vintage U.S. CLOs in 2017.

Neuberger Berman prices

Neuberger Berman Loan Advisers sold $510.8 million of notes due Jan. 15, 2030 in the new Neuberger Berman Loan Advisors CLO 27, Ltd./Neuberger Berman Loan Advisors CLO 27, LLC transaction, according to market sources.

The CLO priced $300 million of class A-1 senior secured floating-rate notes at a discount margin of Libor plus 103 bps in the most senior tranche.

Barclays was the placement agent.

Neuberger Berman priced two new CLOs and refinanced three vintage CLOs in 2017.

The Chicago-based firm is part of Neuberger Berman Group, LLC.

Crestline Denali sells CLO

In Crestline Denali Capital’s deal, the CLO manager priced $409.6 million of notes due January 2030, according to a market source.

Crestline Denali CLO XVI, Ltd./Crestline Denali CLO XVI LLC sold $256 million of class A senior secured floating-rate notes at Libor plus 112 bps in the senior tranche.

BNP Paribas Securities Corp. was the placement agent.

Crestline Denali priced one new CLO and refinanced one vintage CLO in 2017.

The Oak Brook, Ill.-based asset management firm priced two CLO deals in 2016.

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