By Cristal Cody
Tupelo, Miss., Aug. 5 – Avoca Capital Holdings priced €415 million of notes due Oct. 15, 2027 in the Avoca CLO XII Ltd. collateralized loan obligation transaction, according to a market source on Tuesday.
The CLO sold €240 million of class A senior secured floating-rate notes (Aaa//AAA) at Euribor plus 134 basis points at the top of the capital structure.
The CLO priced €43 million of class B senior secured floating-rate notes (Aa2//AA+) at Euribor plus 210 bps; €27 million of class C deferrable floating-rate notes (A2//A) at Euribor plus 260 bps; €19 million of class D deferrable floating-rate notes (Baa2//BBB) at Euribor plus 365 bps; €26 million of class E deferrable floating-rate notes (Ba2//BB) at Euribor plus 550 bps and €13 million of class F deferrable floating-rate notes (B2//B-) at Euribor plus 600 bps.
The transaction included €47 million of subordinated notes in the equity tranche.
Credit Suisse Securities (Europe) Ltd. arranged the deal.
Avoca Capital Holdings will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The offering is backed primarily by euro-denominated first-lien senior secured obligations and eligible investments.
Proceeds from the deal will be used to purchase a €400 million portfolio of European leveraged loans.
Avoca Capital was previously in the European primary market on May 9 with the €518.5 million Avoca CLO XI Ltd. deal and in November with the €310.75 million Avoca Capital CLO X Ltd. transaction.
The Dublin-based credit investment management firm was acquired by KKR & Co. LP in February.
| Issuer: | Avoca CLO XII Ltd.
|
| Amount: | €415 million
|
| Maturity: | Oct. 15, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (Europe) Ltd.
|
| Manager: | Avoca Capital Holdings
|
| Call feature: | 2016
|
| Pricing date: | Aug. 4
|
| Settlement date: | Sept. 9
|
|
|
| Class A notes
|
| Amount: | €240 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 134 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | €43 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 210 bps
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA+
|
|
|
| Class C notes
|
| Amount: | €27 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Euribor plus 260 bps
|
| Ratings: | Moody’s: A2
|
| Fitch: A
|
|
|
| Class D notes
|
| Amount: | €19 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Euribor plus 365 bps
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB
|
|
|
| Class E notes
|
| Amount: | €26 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Euribor plus 550 bps
|
| Ratings: | Moody’s: Ba2
|
| Fitch: BB
|
|
|
| Class F notes
|
| Amount: | €13 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Euribor plus 600 bps
|
| Ratings: | Moody’s: B2
|
| Fitch: B-
|
|
|
| Equity tranche
|
| Amount: | €47 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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