Carlson Capital prices CLO; Veneta Banca raises €1.96 billion; Oak Hill to tap Europe

By Cristal Cody

Tupelo, Miss., Nov. 3 – In new U.S. CLO pricing action, Carlson Capital, LP raised $404.36 million in the asset manager’s second CLO offering of the year.

In the European primary market, Italian bank Veneta Banca Scpa priced a €1,962,570,000 deal backed by Italian small- and medium-sized enterprise loans.

Fitch Ratings said in a news release on Tuesday that European SME CLO performance was stable in October.

Average 90-day delinquencies in Spain have continued to decline from 2.11% in August to 2.0% in September, while 90-day arrears in Italy have remained stable at 2.0%, according to Fitch.

“SME CLO loan issuance has remained hampered by sluggish growth prospects, a lack of economic viability and unfavorable regulatory treatment for securitizations,” Fitch said.

Europe also is expected to see a new broadly syndicated CLO deal from London credit manager Oak Hill Advisors (Europe), LLP, which plans to price €415.8 million of notes in the Oak Hill European Credit Partners IV Designated Activity Co. transaction. Goldman Sachs & Co. is the placement agent.

Primary activity is expected to stay busy over the last two months of the year.

J.P. Morgan Securities LLC analysts said in a market note that “we anticipate a busy calendar through the end of the year given a reportedly robust new-issue pipeline.”

Carlson Capital brings deal

Carlson Capital sold $404.36 million of notes due Jan. 15, 2026 in the Cathedral Lake III Ltd./Cathedral Lake III LLC transaction, according to a market source.

The CLO priced $2.5 million of class A-X floating-rate notes at Libor plus 130 basis points and $257 million of class A-1 loans at Libor plus 137 bps in the AAA-rated tranches.

Jeffries LLC arranged the transaction.

Carlson Capital is the CLO manager.

The CLO is backed primarily by broadly syndicated senior secured corporate loans.

The deal is the second CLO offering Carlson Capital has priced year to date.

The alternative asset management firm is based in Dallas.

Veneta Banca prices CLO

Veneta Banca sold a €1,962,570,000 offering of notes due Oct. 30, 2062 in a deal backed by Italian small- and medium-sized enterprise loans, according to a market source.

Claris SME 2015 Srl priced €1.27 billion of class A floating-rate notes (//AA-) at a spread of 80 bps over Euribor at the top of the capital structure.

J.P. Morgan Securities plc arranged the transaction.

The deal is securitized by a static pool of mortgage and non-mortgage loans to small- and medium-sized enterprises located in Italy. The loans were originated by Veneto Banca and subsidiary bancApulia SpA.

Veneta Banca is a cooperative bank based in Montebelluna, Italy.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.