By Cristal Cody
Tupelo, Miss., Aug. 8 - Fund manager 3i Debt Management Investments Ltd. priced €309.6 million in six tranches of senior secured floating-rate and subordinated notes due 2025 in the Harvest CLO VII Ltd., according to market sources on Thursday.
The collateralized loan obligation offering included €177 million of class A floating-rate notes (/AAA/AAA) priced at Euribor plus 135 basis points.
In the rest of the capital structure, the Harvest CLO VII sold €34 million of class B floating-rate notes (/AA+/AA+) at Euribor plus 175 bps; €20 million of class C deferrable floating-rate notes (/A/A) at Euribor plus 280 bps; €13.6 million of class D deferrable floating-rate notes (/BBB/BBB+) at Euribor plus 370 bps; €23 million of class E deferrable floating-rate notes (/BB/BB) at Euribor plus 550 bps and €42 million of subordinated notes.
Resource America Inc. and Natixis arranged the offering.
3i Debt Management Investments will manage the CLO, which is backed primarily by European senior secured loans and senior secured bonds.
The issue has a two-year non-callable period and a four-year reinvestment period.
Proceeds will be used to purchase a €300 million portfolio of European leveraged loans and bonds.
3i, part of London-based 3i Group plc, had been expected since spring to bring about €300 million in its first post-financial crisis European CLO.
| Issuer: | Harvest CLO VII Ltd.
|
| Amount: | €309.6 million
|
| Maturity: | 2025
|
| Securities: | Senior secured floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agents: | Resource America Inc. and Natixis
|
| Manager: | 3i Debt Management Investments Ltd.
|
| Call feature: | Two years
|
| Pricing date: | Aug. 7
|
|
|
| Class A notes
|
| Amount: | €177 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Euribor plus 135 bps
|
| Ratings: | Standard & Poor's: AAA
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | €34 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Euribor plus 175 bps
|
| Ratings: | Standard & Poor's: AA+
|
| Fitch: AA+
|
|
|
| Class C notes
|
| Amount: | €20 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Euribor plus 280 bps
|
| Ratings: | Standard & Poor's: A
|
| Fitch: A
|
|
|
| Class D notes
|
| Amount: | €13.6 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Euribor plus 370 bps
|
| Ratings: | Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| Class E notes
|
| Amount: | €23 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Euribor plus 550 bps
|
| Ratings: | Standard & Poor's: BB
|
| Fitch: BB
|
|
|
| Equity tranche
|
| Amount: | €42 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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