Credit Suisse launches fifth CLO of 2013; Trimaran, Ares to price U.S., European CLOs

By Cristal Cody

Tupelo, Miss., May 23 - Credit Suisse Group AG recently launched the arrangement of its fifth collateralized loan obligation in 2013 with a deal for Trimaran Advisors LLC to sell a $413.8 million CLO, according to an informed source.

Credit Suisse Securities has arranged four CLO transactions this year, three in the United States and one in Europe. The latter was the first CLO sold in the European market since 2010.

Cairn Capital Ltd. raised €300.5 million in the European deal, with the triple A tranche of €181.5 million of class A senior secured floating-rate notes (Aaa/AAA/) priced at six-month Euribor plus 140 basis points.

Credit Suisse also is the underwriter for Ares Management LLC's upcoming €300 million European CLO, which is still in the early stages of development, according to an informed source.

The deal will be Ares Management's first European CLO offering since 2007, when it priced three transactions.

Several new European CLO deals are expected, including a €300 million offering from Carlyle Group via Barclays.

Investors and others are eagerly looking toward Europe with excitement that the market reopened this year and that new deals are on the calendar, though regulations hold many back from bringing a deal, sources said.

European CLO issuance may be crimped after the European Banking Association released a consultation paper on Wednesday to clarify the risk retention requirements for managers, according to sources.

The risk retention compliance to retain 5% equity currently has been satisfied by either the CLO manager or a third-party sponsor.

"New guidance came out yesterday which suggests the risk retention piece in the future will need to be taken by the manager, so it may not apply any more to third parties, which could put some deals and plans on hold for a bit," one source said. "A lot of deals being completed at the moment have the risk retention piece coming from third parties."

The European Banking Association is accepting comments on the proposals until Aug. 22.

In new CLO issuance brought over the week, TICC Capital Corp. sold $80 million in a reopening of its CLO priced in 2012, according to an 8-K filing with the Securities and Exchange Commission.

Trimaran plans $413.8 million

Trimaran plans to sell $413.8 million in the Catamaran CLO 2013-1, which is expected to price in the next week or two, an informed source said.

Credit Suisse Securities (USA) LLC is the underwriter.

Trimaran Advisors, which will manage the cash-flow CLO, was last in the CLO market in 2012.

The New York-based asset management company is a wholly owned portfolio company of KCAP Financial, Inc.

Ares to sell €300 million CLO

Marketing on the Ares European CLO VI Ltd. started last week, and pricing is expected in late June, according to an informed source.

Credit Suisse Securities is the placement agent.

Los Angeles-based Ares is an asset management and investment advisement firm.

TICC reopens 2012 CLO

TICC Capital sold $80 million of additional issuance under the accordion feature of its CLO priced in 2012, according to an 8-K filing with the SEC.

The firm sold $60 million of additional secured notes and $20 million of subordinated notes on Tuesday as an add-on to the $160 million CLO offering of notes due Aug. 25, 2023 that closed on Aug. 23, 2012.

Pricing terms were not immediately available.

In the original deal, TICC CLO 2012-1, LLC sold $88 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 175 bps.

TICC Capital, a Greenwich, Conn.-based business development company, is the CLO manager.

The transaction is set to close on May 28.

© 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.