THL, BlueMountain price managers’ first CLOs of year; heavy supply weighs on spreads

By Cristal Cody

Tupelo, Miss., June 27 – Two CLO managers priced their first new deals of the year.

THL Credit Advisors LLC sold $511.5 million of notes in its offering. THL was in the primary market in 2017 with four new CLO deals.

BlueMountain Capital Management LLC priced a $407.95 million CLO transaction.

Deal spreads are drifting wider and are not anticipated to firm significantly.

Wells Fargo Securities analysts said they expect “expect heavy supply – of new issue, refi’s and resets – to limit spread tightening this summer.”

In its deal, THL Credit Advisors priced $511.5 million of notes due July 15, 2030 in the THL Credit Wind River 2018-1 CLO Ltd./THL Credit Wind River 2018-1 LLC transaction, according to a market source.

The CLO sold $298.75 million of class A-1 senior secured floating-rate notes at Libor plus 104 basis points in the senior tranche.

Morgan Stanley & Co. LLC was the placement agent.

Meanwhile, BlueMountain Capital Management priced $407.95 million of notes due July 15, 2031 in the BlueMountain CLO XXII Ltd./BlueMountain CLO XXII LLC transaction, according to a market source.

The CLO sold $250 million of class A-1 floating-rate notes at Libor plus 108 bps at the top of the capital structure.

J.P. Morgan Securities LLC was the placement agent.

© 2015 Prospect News.
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