Banks are marketing at least two collateralized loan obligations this week, according to ratings agency reports: a $747.5 million offering from frequent issuer Credit Suisse Asset Management (CSAM) and a $474.9 million offering from Western Asset Management Co. (WAMCO), which hasn’t come to market since the financial crisis.
Both are actively-managed, cash-flow deals expected to close in February.
Credit Suisse Securities is arranging Atrium IX for its money management affiliate, according to a presale report issued today by Standard & Poor’s. The deal includes a $522 million ‘AAA’-rated tranche that is being shopped at a spread of 130 basis points over three-month Libor.
It has a four-year reinvestment period and a two-year non-call period.
CSAM has identified about $494 million of the deal’s $810 billion of targeted collateral, according to the presale report.
CSAM manages $381 billion in assets, approximately $10.8 billion of which are in 27 CLOs.
Jefferies is the initial purchaser of the notes to be issued by WAMCO’s Mountain Hawk I CLO.
The deal includes a $310 million AAA-rated class of notes being talked at three-month Libor plus 120 basis points and a $10 million AAA-rated class talked at Libor plus 128 basis points, according to a presale report issued today by Moody’s Investors Service.
Mountain Hawk I CLO has a four-year reinvestment period and a two-year non-call period.
Currently the manager has identified approximately 100% of the portfolio’s target par amount and expects to acquire at least 50% of those assets by the closing date. Moody’s said this is less than the percentage of assets typically acquired in a CLO at closing; WAMCO intends to acquire the remaining assets during the four-month ramp-up period between the closing date and the effective date.
WAMCO has approximately $460 billion in total assets under management in a variety of products, including two CLOs that were issued in 2006 and 2007. However Moody’s noted that the firm’s bank loan group consists of a 15 person research team that averages over 18 years of experience. In addition, WAMCO has “dedicated substantial resources to their operational systems and controls, which are designed to accommodate a diverse and expanding business platform.”
