Bain prices $509 million CLO; Horizon Technology brings deal; secondary spreads flat

By Cristal Cody

Tupelo, Miss., Aug. 5 – In new CLO issuance, Bain Capital Credit CLO Advisors, LP priced $509 million of notes in the manager’s second deal of the year.

In other primary market activity, Horizon Technology Finance Corp. priced a $100 million asset-backed loan securitization transaction.

Overall CLO deal volume has slowed at the start of August following strong issuance in July, market sources report.

Secondary market volume also was light with bids-wanted-in-competition (BWIC) volume of less than $400 million for the week ended Friday, according to a BofA research note released on Monday.

“AAA tranches contributed the highest total volume to this week's auction lists although there was also a meaningful amount of equity items up for bid following July's payment dates,” BofA analysts said in the note.

The impact from the Federal Reserve’s widely expected rate cut on Wednesday and president Donald Trump’s announcement of a 10% tariff on $300 billion of additional Chinese imports “has yet to be fully felt given overall thin volume,” according to the note.

“Generally, the front-end of the curve continued to be well-bid, especially among the more senior tranches,” the analysts said. “Week over week, spread levels remained unchanged.”

AAA-rated CLO spreads were flat at the Libor plus 115 basis points area on Friday.

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