CLO primary market pace slower, spreads wider; $458.1 million TIAA CLO VI prices

By Rebecca Melvin

New York, Jan. 3 – The primary market for collateralized loan obligations has been slow since the beginning of December, with the tally for new issuance for that month a low $5.7 billion. But issuance for the year remained at a post-crisis high of $127 billion, according to Wells Fargo Securities’ CLO Monthly Market Overview, published on Thursday.

Market volatility and spread widening may have delayed some deals that would have otherwise priced in December, Wells Fargo analysts David Preston and Mackenzie Miller wrote in the report.

Meanwhile, secondary market action was brisk over the last month, with stable fundamentals and technicals described as moderate despite spreads that expanded to 12- to 18-month wides.

Among recent new issues, the $458.1 million TIAA CLO VI Ltd./TIAA CLO VI LLC, a broadly syndicated CLO offering, priced, and among refinancings, the $640.5 million Symphony CLO XV Ltd. CLO of notes due Jan. 17, 2032 priced.

In the TIAA CLO VI Ltd./TIAA CLO VI LLC, there were $261 million of class A-1a senior secured floating-rate notes priced at Libor plus 123 bps and $28 million of class A-1b senior secured floating-rate notes priced at Libor plus 145 bps at the top of the capital stack.

Citigroup Global Markets Inc. was the initial purchaser of the notes.

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