Columbia Management and the Carlyle Group both priced collateralized loan obligations this week in line with initial guidance, according to a person familiar with the transactions.
Both Columbia’s $414 million Cent CLO 17 and the $604.9 million Carlyle Global Market Strategies CLO 2013-1 were arranged by Citigroup and rated by Standard & Poor’s and Moody’s Investors’ Service, according to presale reports.
The senior, ‘AAA’-rated tranches of both deals both priced at a spread of Libor plus 130 basis points and the ‘AA’-rated tranches of both deals priced at Libor plus 200 basis points.
The similarities ended there. Carlyle Global Market Strategies’ ‘AA’ fixed-rate tranche priced at 3.44%, while the ‘AA’ fixed-rate tranche of Cent CLO 17 priced at 3.46%.
Carlyle’s 2013-1 had to pay up for its ‘A’-rated tranche, at Libor plus 310 basis points, while the ‘A’ tranche of Cent CLO 17 was just Libor plus 300 basis points.
Likewise, Carlyle’s ‘BBB’-rated tranche pays a higher Libor plus 400 basis points versus the Libor plus 350 basis point spread on the ‘BBB’-rated tranche of Cent CLO 17.
At the ‘BB’-tranche level, the roles were reversed with Carlyle paying just Libor plus 550 basis points versus Libor plus 600 basis points for Cent CLO 17.
Columbia Management had nine CLOs as of June 2012, and a total of $5 billion in various kinds of assets under management.
Carlyle currently manages 23 S&P-rated CLOs with total assets of $9.47 billion.