© 2020 Arizent. All rights reserved.

CSAM's 1st CLO of 2019 bests market average for AAA

Register now

Credit Suisse Asset Management is pricing its first CLO deal of the year, the $503.3 million Madison Park Funding XXXIV, at a more favorable rate than many recent transactions from its peers.

The $294.5 million Class A-1 notes tranche, which is rated AAA by Fitch Ratings, pays a spread of 133 basis points over Libor. That compares favorably to the average spread of 138 basis points across the AAA-rated tranches of four new-issue collateralized loan obligation portfolios that priced last week, according to Deutsche Bank.

Those deals, from Bain Capital, Golub Capital, Invesco and Texas-based Trinitas Capital Management, priced in ranges from 137 (Golub) to 146 (Trinitas), according to Deutsche Bank.

The spread Madison Park XXXIV’s Class A-1 rate is wider, however, than that of Credit Suisse’s previous CLO transaction, completed in December (120 basis points).

The new deal has another AAA-rated tranche the $27.8 million Class A-2, that pays a fixed rate of 4.31%.

Fitch is not rating the Class B ($50.1 million), Class C ($28.8 million) or Class C ($31.3 million) notes, but is assigning a BB- rating to the $21.3 million Class E notes rated BB-.

Madison XXXIV have a five-year reinvestment period and will be non-callable for two years.

Last week brought March’s total volume issuance up to $4.45 billion across nine deals, an “anemic” figure compared to more than $13.2 billion in February CLO new-deal volume that was the largest in eight months, according to JPMorgan.

For reprint and licensing requests for this article, click here.
CLOs CDOs
MORE FROM ASSET SECURITIZATION REPORT