The Carlyle Group priced its fourth collateralized loan obligation of the year Friday, bringing U.S. issuance for the year to date to $62.6 billion, according to Thomson Reuters LPC.
Carlyle’s $415 million Global Market Strategies CLO 2013-4, has three classes rated ‘AAA’ by Moody’s Investors Service; the $1.2 million class X notes were marketed at Libor plus 90 basis points; the $122 million class A-1 notes were marketed at Libor plus 147 basis points and $130 million class A-2 notes have a step-up coupon: they yield Libor plus 110 basis points for the first 18 months, Libor plus 160 basis points for the next 12 months and Libor plus 190 basis points thereafter, according to Moody’s.
Moody’s also assigned Aa2 ratings to a $24 million floating-rate class marketed at Libor plus 170 basis points and a $20 million class of fixed-rate notes marketed at 3.973%.
The A-2 notes are non-callable until May 2015; the remainder of the deal is non-callable until January 2016. The deal’s reinvestment period ends in October 2017.
While CLO issuance continues to hum along at $3.7 billion so far in October, spreads on triple-A-rated tranches have widened, to the 135-140 basis point range, according to Thomson Reuters. That compares with the recent low of 116 basis points over Libor recorded in May and June.
The cost of acquiring collateral for new CLOs is also increasing after reaching a recent low in March and April. Yield on new-issue single-B-rated loans sits in the area of 5.66% so far this month, up 79 basis points from the low in the second quarter.