Canyon CLO 2019-2 prices $505.75 million; Tralee CLO VI prices $353.5 million notes

Chicago, Sept. 10 – The day was looking quiet on the primary CLO front until two deals priced late in the day.

Canyon CLO Advisors LLC appeared with a deal for $505.75 million, issued by Canyon Capital CLO 2019-2, Ltd./Canyon Capital CLO 2019-2, LLC.

And, also new to the market, Par-Four Investment Management LLC priced $353.5 million Tralee CLO VI, Ltd./Tralee CLO VI, LLC notes.

Secondary trading volume was busier on Monday, according to Trace data.

The CBO/CDO/CLO saw $264.36 million exchange hands.

In a change of pace, that volume was split nearly evenly between the investment-grade and non-investment grade sectors.

The investment-grade sector traded $133.29 million at an average price of 97.8.

And, the non-investment grade sector posted $131.07 million in volume with an average price of 96.2.

Canyon prices CLO

In the Canyon CLO Advisors’ second CLO transaction of 2019, bringing assets under management for the firm to $4.4 billion, the new portfolio priced six tranches, including the subordinated tranche.

The ramp-up completion is at 92.64%, according to S&P Global Ratings, with 232 obligors.

The industries of the top five obligors are: trading companies and distributors; personal products, health care equipment and supplies; IT services and hotels, restaurants and leisure, according to the pre-sale report.

Up to 65% of the portfolio can consist of covenant-lite loans, and a maximum of 10% can be collateralized by obligations other than senior secured loans, cash and eligible investments.

Tralee sells $353.5 million

The other CLO of the day, Tralee, priced in 12 tranches of fixed-, floating-rate and subordinated notes.

The largest tranche was $130 million, the A-1 tranche. The smallest was $5 million, the D-F deferrable fixed-rate tranche.

As of August, the manager had $1.65 billion in assets under management.

In this portfolio, a maximum of 50% of the loans can be covenant-lite.

According to S&P, the transaction has a higher weighted average spread and a higher available excess spread than the three-month average of CLOs to price.

The industry concentration of the portfolio favors hotels, restaurants and leisure and media.

The portfolio is fully ramped with 200 obligors.

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