NIBC Bank plans €300 million North Westerly CLO IV deal; 'full pipeline' eyed through year

By Cristal Cody

Tupelo, Miss., Sept. 19 - Primary market activity is back on the upswing with new CLO transactions over the week and more transactions in the pipeline, according to market sources on Thursday.

"It's pretty wide on AAAs, but everything else is pretty good," one informed source said. "It's starting to pick up again from the summer slowdown. There are a lot of deals in the market now."

AAA-rated CLO slices are pricing at spreads of Libor plus 130 basis points to 150 bps, "depending on the deal," the source said.

At the bottom of the capital structure, tranches are pricing in the area of Libor plus 600 bps.

In recent issuance, Acis CLO 2013-2 Ltd./Acis CLO 2013-2 LLC brought a $650 million CLO at spread ranges of 50 bps over Libor to under 600 bps, according to market sources.

Carlyle Global Market Strategies Euro CLO 2013-2, Ltd.'s €335.9 million deal priced earlier in the week came at spreads of Euribor plus 135 bps to Euribor plus 550 bps across the capital structure.

No let-up in primary activity is expected through the rest of the year after the lull in activity in early September, market sources said.

NIBC Bank NV is underway in plans to price its first European CLO since the financial crisis, according to a market source on Thursday.

"It's a pretty full pipeline through the end of the year," a source said.

Acis prices CLO

Acis CLO 2013-2's deal included floating-rate and subordinated notes due Oct. 14, 2022.

The CLO priced $388 million of class A senior secured floating-rate notes (Aaa) at a discount to investors of Libor plus 50 bps.

The CLO also sold $69 million of class B senior secured floating-rate notes at Libor plus 179 bps; $28 million of class C-1 mezzanine secured deferrable floating-rate notes at Libor plus 282 bps; $25 million of class C-2 mezzanine secured deferrable floating-rate notes at Libor plus 321 bps; $31 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 385 bps; $26 million of class E junior secured deferrable floating-rate notes at Libor plus 493 bps; $13 million of class F junior secured deferrable floating-rate notes at Libor plus 592 bps and $70 million of subordinated notes.

Jefferies LLC arranged the offering.

Highland Capital Management, LP affiliate Acis Capital Management, LP is the collateral manager. The CLO is backed by broadly syndicated first-lien senior secured loans.

Dallas-based Highland was last in the market with the $525.5 million Acis CLO 2013-1 Ltd. transaction in February.

Carlyle upsizes

Carlyle Global Market Strategies Euro CLO 2013-2 upsized its offering of notes due Sept. 28, 2026 to €335.9 million from €299 million, according to an informed source on Thursday.

The CLO priced €179 million of class A-1 floating-rate notes (/Expected AAA/AAA) at Euribor plus 135 bps; €31.5 million of class A-2A floating-rate notes (/Expected AA/AA) at Euribor plus 200 bps; €19.9 million of 3.79% class A-2B fixed-rate notes (/Expected AA/AA); €19.4 million of class B floating-rate notes (/Expected A/A) at Euribor plus 325 bps; €18.8 million of class C floating-rate notes (/Expected BBB/BBB) at Euribor plus 400 bps; €19.9 million of class D floating-rate notes (/Expected BB/BB) at Euribor plus 500 bps; €7.8 million of class E floating-rate notes (/Expected B/B-) at Euribor plus 550 bps; and €39.6 million of subordinated notes.

Citigroup Global Markets Inc. was the placement agent.

CELF Advisors LLP, part of the Carlyle Group LP, will manage the CLO, which is backed by senior secured obligations.

Proceeds from the sale will be used to purchase a €325 million portfolio of European leveraged loans and bonds.

The deal is Carlyle's second European CLO transaction of the year, following the €350 million Carlyle Global Market Strategies Euro CLO 2013-1 BV offering in June.

NIBC to sell €300 million CLO

In the European CLO market, NIBC Bank plans to price €300 million of notes in a Regulation S and Rule 144A deal via RBS Securities Inc., according to an informed source on Thursday.

North Westerly CLO IV is expected to include rated tranches of AAA, AA, A, BBB and BB notes.

NIBC Leveraged Finance Markets will be the CLO manager.

The CLO will invest primarily in senior secured first-lien leveraged loans.

NIBC's last European CLO deal, the €410 million North Westerly CLO III BV offering, priced in 2006.

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