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There was no hint of a let-up in CLO issuance this week as Blackstone Debt Advisors priced its third CLO and Investec Principal Finance released price talk for its third.
This means a staggering three CLOs in less than 12 months for both managers. There was also a debut issue from Egret Capital, the wholly owned CLO management arm of Societe Generale.
Blackstone's Eu462.6m Green Park was arranged by Credit Suisse, while Egret Capital's Egret Funding CLO I was arranged by Societe Generale. Barclays Capital will arrange Gresham CLO III for Investec Principal Finance.
A certain level of tiering was apparent in the pricing, particularly in the double-B rated tranches. Green Park matched the European record level of 335bp over Euribor, while price talk for Gresham is in the 375bp area for the equivalent tranche. Egret Capital, in its debut transaction, came at 430bp over Euribor at the double-B level.
"The very tight pricing reflects the quality of the manager," said Clayton Perry, head of European CDOs at Credit Suisse....