CLO supply picks up; AXA prices $409.7 million; Octagon plans its fourth deal of year

By Cristal Cody

Tupelo, Miss., July 9 – CLO deal action in July is picking up with several deals priced and new ones in the pipeline, according to market sources on Monday.

AXA Investment Managers, Inc. sold $409.7 million of notes in the CLO manager’s third new CLO offering of 2018.

Octagon Credit Investors, LLC plans to price a $765.7 million CLO deal in its fourth transaction of 2018. Octagon has priced three new CLOs year to date, including the $610.9 million Octagon Investment Partners 37, Ltd./Octagon Investment Partners 37, LLC deal expected to close on Tuesday.

The previous week included 17 CLO transactions brought to the U.S. primary market, including seven new deals and 10 refinancing, reset and reissue CLOs, according to a BofA Merrill Lynch analysts’ note released on Monday.

“Much of this supply has been anticipated and is only the beginning of what is expected to be a rather heavy month given July as a popular pay-month for many deals,” the analysts said.

In its deal, AXA Investment Managers priced $409.7 million of notes due July 15, 2031 in the new CLO, according to a market source.

Allegro CLO VIII, Ltd./Allegro CLO VIII LLC sold $260 million of class A floating-rate notes at Libor plus 110 basis points in the senior tranche.

Barclays was the placement agent.

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