Vista prices $304.74 million debut CLO; year’s middle-market supply tops $10 billion

By Cristal Cody

Tupelo, Miss., Aug. 13 – Vista Credit Opportunities Management LP came to the CLO primary market for the first time with a $304.74 million CLO deal backed by broadly syndicated and middle-market loans.

Vista is the first new CLO manager to tap the middle-market primary market this year, a source said.

Middle-market CLO volume year to date totals more than $8 billion, compared to the nearly $70 billion of new broadly syndicated CLOs that have priced this year, according to market sources.

Overall broadly syndicated CLO supply has “outweighed demand” by $31.6 billion as of the week ended Aug. 3, and spreads remain soft, according to a BofA Merrill Lynch note on Monday.

VCO CLO 2018-1 details

Vista Credit Opportunities Management sold $304.74 million of notes due July 20, 2030 in the new CLO transaction, according to a market source.

VCO CLO 2018-1 LLC priced $158 million of class A floating-rate notes at Libor plus 150 basis points in the senior tranche.

Wells Fargo Securities LLC was the placement agent.

The deal is collateralized by a mix of broadly syndicated and middle-market senior secured loans.

Vista Credit Opportunities Management is a credit investment and financing firm based in San Francisco.

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