FOMC meeting slows CLO market; Carlyle, Apidos price; Invesco set to bring $413 million

By Cristal Cody

Tupelo, Miss., June 17 - The collateralized loan obligation market slowed on Monday as the financial markets anticipate any changes to the Federal Reserve's $85 billion monthly asset purchases ahead of the central bank's two-day policy meeting ending on Wednesday.

"It's slower on the secondary front and the primary front," a market source said. "There's not a lot of trading in the CLO market. There were only two U.S. CLOs issued last week. We don't expect any [this week] until after the meeting."

CLO tranches are pricing wider over the month on an overall weakness in the loan market, according to market sources.

More established CLO managers have sold CLO triple A-rated tranches at the Libor plus 115 basis points area, while lesser-known CLO managers have priced in the Libor plus 125 bps to 130 bps area, a source said.

"There's definitely a big concession for lesser established or less well-known managers," the source said.

Carlyle Global Market Strategies CLO 2013-3, Ltd./ Carlyle Global Market Strategies CLO 2013-3, LLC sold a $516.9 million CLO of notes due July 15, 2025, with the triple A tranche priced at Libor plus 115 bps, a market source said.

Apidos CLO XIV/Apidos CLO XIV LLC sold $617.36 million in fixed-rate, floating-rate and subordinated notes due 2025, including a $249 million tranche of notes (Aaa) at Libor plus 115 bps, according to an informed source.

In other new issuance, Sankaty Advisors LLC and Oaktree Capital Management LP have priced their previously announced CLO offerings.

Sankaty Advisors sold the $516.75 million Avery Point II CLO Ltd. offering of notes due 2025.

BofA Merrill Lynch was the underwriter.

Boston-based Sankaty Advisors, the credit investment unit of Bain Capital LLC, is the CLO manager.

Oaktree Capital Management brought a $655.18 million CLO, the Oaktree Enhanced Income Funding Series III Ltd./Oaktree Enhanced Income Funding Series III LLC.

Wells Fargo Securities LLC was the lead placement agent, and GreensLedge Capital Markets LLC was co-lead placement agent.

Additional pricing terms were not immediately available.

Issuance has reached about $4.7 billion in nine deals priced in June, one informed source said.

"Pretty strong number considering we're just halfway through the month," the source said. "We don't expect another 10 deals this month, but we should probably end the month with $6 to $7 billion, which is a strong level of issuance."

Atlanta-based Invesco Ltd. plans to sell a $413 million CLO via BofA Merrill Lynch in June, according to an informed source.

BlueMountain Capital Management LLC also is expected to price its previously announced $410.4 million offering.

Apidos CLO XIV prices

Apidos CLO XIV/Apidos CLO XIV LLC sold $617.36 million in fixed- and floating-rate notes and subordinated notes due 2025, according to a market source.

In the offering, Apidos priced $375 million of class A senior secured floating-rate notes (Aaa) at Libor plus 115 bps; $80 million of class B-1 senior secured floating-rate notes at Libor plus 170 bps; $10 million of 3.57% class B-2 senior secured fixed-rate notes; $11 million of class C-1 mezzanine deferrable floating-rate notes at Libor plus 285 bps; $20 million of 4.85% class C-2 mezzanine deferrable fixed-rate notes; $32 million of class D mezzanine deferrable floating-rate notes at Libor plus 350 bps; $27 million of class E mezzanine deferrable floating-rate notes at Libor plus 440 bps and $10 million of class F mezzanine deferrable floating-rate notes at Libor plus 525 bps.

The deal included a $52.36 million tranche of subordinated notes.

The notes have a two-year non-call period.

The cash-flow CLO is backed by broadly syndicated first-lien senior secured loans.

Deutsche Bank Securities Inc. was the underwriter.

CVC Credit Partners, LLC, a unit of London-based private equity firm CVC Capital Partners Ltd., is the CLO manager.

Carlyle closes €350 million

The Carlyle Group said on Monday that it closed its €350 million CLO offering of notes due Aug. 15, 2025.

Carlyle Global Market Strategies Euro CLO 2013-1 BV sold €210 million of class A notes (/AAA/); €29.5 million of class B-1 notes (/AA/); €9 million of class B-2 notes (/AA/); €10 million of class C-1 notes (/A/); €9.825 million of class C-2 notes (/A/); €7 million of class D-1 notes (/BBB/); €8.175 million of class D-2 notes (/BBB/); €24.5 million of class E notes (/BB/); €24.5 million of class S-1 notes and €17.5 million of class S-2 notes.

Final pricing terms were not available.

Barclays arranged the transaction.

CELF Advisors LLP, which independently advises Carlyle's European structured credit funds, is the CLO manager.

Carlyle Global Market Strategies Euro CLO 2013-1 will invest predominantly in new issue and secondary market European senior secured bank loans.

The cash-flow CLO is backed by a revolving pool of broadly syndicated senior secured loans and bonds.

© 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.