Investcorp Credit prices €489.1 million CLO; Neuberger Berman plans second refinancing

By Cristal Cody

Tupelo, Miss., Jan. 27 – Investcorp Credit Management EU Ltd. priced an upsized €489.1 million new European broadly syndicated CLO on Monday.

A couple of dollar-denominated CLO deals also priced last week as the primary market starts to reopen with year-to-date issuance now of $1.3 billion, BofA Securities Inc., analysts reported in a research note released Monday.

New issue supply is expected to be slow over the final part of January and in February, the BofA analysts said.

The refinancing space is staying active with more than $2 billion already priced year to date.

Coming up, Neuberger Berman Investment Advisers LLC plans to price $368 million of notes in a second refinancing of a vintage 2013 CLO.

Meanwhile in the secondary market, U.S. CLO BWIC volume was $624 million for the past week ended Friday, down from $1.5 billion in the week prior, according to the BofA report.

“Spreads tightened in the IG part of the capital stack by 3 [basis points]-5 [bps] on the back of low bid volume and healthy demand,” the analysts said.

CLO AAAs were quoted at Libor plus 106 bps in the secondary market on Friday, 3 bps tighter on the week.

“From a supply-demand perspective, the lack of new CLO issuance so far this year has been supportive of secondary spreads,” the BofA analysts said.

Investcorp upsizes

Investcorp Credit Management EU priced €489.1 million of notes due 2032 in its new broadly syndicated CLO offering on Monday, according to market sources.

The deal was upsized from €409 million.

Harvest CLO XXIII DAC sold €276.8 million of class A floating-rate notes at Euribor plus 95 bps in the AAA-rated tranche.

Credit Suisse Securities (Europe) Ltd. was the placement agent.

The CLO is backed primarily by senior secured loans and senior secured bonds.

Investcorp is a subsidiary of Bahrain-based Investcorp Bank BSC.

Neuberger Berman on tap

In the refinancing space, Neuberger Berman Investment Advisers plans to price $368 million of notes due Jan. 28, 2030 in a second print of the vintage 2013 Neuberger Berman CLO XIV, Ltd./Neuberger Berman CLO XIV LLC transaction, according to a market source and a notice of proposed supplemental indenture on Friday.

The offering includes $252.8 million of class A-R2 floating-rate notes (expected ratings: AAA/AAA); $51.4 million of class B-R2 floating-rate notes (expected rating: AA); $24.25 million of class C-R2 floating-rate notes (expected rating: A); $23.75 million of class D-R2 floating-rate notes (BBB-) and $15. 8 million of class E-R2 floating-rate notes (expected rating: BB-).

Citigroup Global Markets Inc. is the refinancing agent.

The original $413.19 million transaction was issued on May 10, 2013 and was first refinanced on April 28, 2017.

The deal is backed predominantly by broadly syndicated first-lien senior secured corporate loans.

The Chicago-based firm is part of Neuberger Berman Group, LLC.

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