The 2012 tally for CLO issuance is bound to surpass $47 billion this week, Standard & Poor’s said in commentary this morning.
Aside from at least four collateralized loan obligations that have printed over the week, there’s a deal from GSO/Blackstone Debt Funds Management close to pricing.
The $515 million Finn Square, which JPMorgan Securities is raising for GSO/Blackstone, includes a $319.30 million triple-A-rated tranche with an assumed coupon of Libor plus 140 bps, according to a presale report from Moody’s Investors Service.
In its presale report, Moody’s said that the offering requires that the portfolio comprise only corporate debt with investment in long-dated assets not permitted. Additionally, the rating agency stated that manager consent to amendments that extend the maturity of any assets is subject to certain restrictions. The CLO does not allow noteholders to surrender their notes in exchange for zero payment. The deal also has safeguards against the issuer’s involuntary bankruptcy.
Deals that have priced this week include the $311 million Doral CLO III, which printed on Dec. 5, S&P mentioned in a commentary this morning. The triple-A coupon priced at Libor plus 145 basis points, which the rating agency said was a few basis points wider than recent deals. Citigroup Global Markets raised the CLO for Doral Leveraged Asset Management.
Another transaction that priced this week is Ares CLO XXV worth $568 million. Leveraged Commentary and Data said that the spread on the triple-A tranche was 139 bps over Libor. Bank of America Merrill Lynch raised the CLO for Ares Management.
Moody’s is also rating CIFC Funding 2012-III, Ltd, which priced this morning. This is a typical cash-flow CLO transaction that is collateralized by a $500 million broadly syndicated loan portfolio, the agency said.
CIFC Asset Management is the manager on the CLO via underwriter RBS Securities.
The Class A-IL triple-A-rated tranche worth $320 million has a coupon of 138 basis points over three-month Libor, according to a Moody’s presale.
Meanwhile, Bloomberg reported today that Credit Suisse has also raised a $412.9 million CLO for CVC Credit Partners. It has a $263.3 million portion rated triple-A that has a coupon of Libor plus 139 bps, the news report said.