Tikehau prices €354.7 million debut CLO; ICG sells $410.75 million; BBB, BB spreads widen

By Cristal Cody

Tupelo, Miss., June 12 – Tikehau Capital Europe Ltd. tapped the market with a €354.7 million debut CLO deal, according to a market source on Friday.

About €12 billion of euro-denominated CLOs have priced year to date following the transaction, Prospect News data shows.

In the U.S. market, ICG Debt Advisors LLC brought a $410.75 million CLO offering, a source said.

More than $58 billion of U.S. CLOs have priced year to date, according to the data.

In the secondary market, CLO spreads have started to move wider, Wells Fargo Securities, LLC senior analyst Dave Preston said in a note on Friday.

“BBB spreads are approximately 10-15 basis points wider, and BB spreads have widened approximately 15-25 bps,” Preston said. “We believe that the widening is due to the continued large amount of secondary supply, combined with the fact that BBB and BB spreads were at or close to post-crisis tights.”

Tikehau prices €354.7 million

Tikehau Capital Europe sold €354.7 million of notes due June 30, 2028 in a CLO transaction, according to a market source.

Tikehau CLO BV priced €161 million of class A-1 senior secured floating-rate notes at Euribor plus 135 bps at the top of the capital structure.

Goldman Sachs International arranged the offering.

Tikehau Capital Europe is the CLO manager.

The notes are backed by euro-denominated senior secured obligations.

Proceeds from the transaction will be used to purchase a €340 million portfolio of mostly euro-denominated leveraged loans and bonds.

Tikehau Capital Europe is a London-based investment firm.

ICG brings $410.75 million

ICG Debt Advisors sold $410.75 million of notes due July 19, 2027 in a CLO offering, according to a market source.

ICG US CLO 2015-1, Ltd./ICG US CLO 2015-1 LLC priced $258 million of class A-1 floating-rate notes at Libor plus 150 bps in the senior tranche.

Credit Suisse Securities (USA) LLC was the placement agent.

ICG Debt Advisors will manage the CLO, which is backed primarily by senior secured corporate loans.

The CLO has a two-year non-call period and a four-year reinvestment period.

Proceeds from the deal will be used to purchase assets to reach a target portfolio of about $400 million of mostly senior secured loans.

ICG Debt Advisors priced three CLO deals in 2014.

The firm is a subsidiary of London-based parent company Intermediate Capital Group plc.

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