A $600 million collateralized loan obligation raised by Deutsche Bank for Octagon Credit Investors brought last week’s deal tally to five transactions totaling roughly $2.68 billion, according to sources.
Octagon Investment Partners XIV was upsized from its original $474.5 million. The triple-A tranche priced at Libor plus 140 bps, in line with the week’s other deals.
Another CLO close to printing is a $550 million transaction from Ares CLO Management, raised by Bank of America subsidiary Merrill, Lynch, Pierce, Fenner & Smith, sources said.
The Ares XXV CLO contains a $339.5 million tranche rated triple-A by Moody’s Investors Service and Standard & Poor’s, according to pre-sale reports from the ratings agencies.
Ares joins a growing group of managers returning to the market within a few months of issuing their previous CLO. The firm raised the $718.9 million Ares XXIV CLO, one the largest of the year, in August via JPMorgan.
Also printing last week: a $625.5 million CLO for Angelo, Gordon & Co. raised by Morgan Stanley; a $612 million deal for BlackRock Financial Management via Citi; a $513.63 million fund for THL Credit Senior Loan Strategies also raised by Deutsche; and a $325.88 million middle-market CLO for NewStar Financial via Wells Fargo.
The Octagon transaction brings year-to-date CLO new issue volume to $49 billion, according to Barclays Capital analysts.