Covenant Credit Partners brings first CLO; Triumph Capital Advisors preps second deal

By Cristal Cody

Tupelo, Miss., June 19 – Covenant Credit Partners LLC priced its expected $527.5 million collateralized loan obligation transaction, according to a market source.

The CLO brought the AAA tranche of notes at Libor plus 148 basis points, on the tight side of issuance year to date.

CLO issuance has been strong over the month with more than $8 billion of deals priced in June.

About $13 billion of transactions remain in the pipeline, according to market sources.

Coming up, Triumph Capital Advisors, LLC plans to offer a $416,125,000 CLO deal, a source said.

Covenant Credit brings CLO

Covenant Credit Partners priced $527.5 million of notes due July 15, 2026 in the firm’s first CLO transaction, according to a market source.

Covenant Credit Partners CLO I Ltd./Covenant Credit Partners CLO I LLC sold $3.5 million of class X senior secured floating-rate notes (Aaa/AAA/) at Libor plus 100 bps and $305 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 148 bps.

The CLO also priced $65 million of class B senior secured floating-rate notes (/AA/) at Libor plus 205 bps; $40 million of class C deferrable floating-rate notes (/A/) at Libor plus 290 bps; $26 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 345 bps; $26.5 million of class E deferrable floating-rate notes (/BB-/) at Libor plus 490 bps and $61.5 million of subordinated notes.

Morgan Stanley & Co. LLC arranged the deal.

Covenant Credit Partners will manage the CLO.

The vehicle is backed primarily by broadly syndicated senior secured loans.

The CLO has a two-year non-call period and a four-year reinvestment period.

Covenant Credit Partners is an alternative credit investment management firm based in Charlotte, N.C.

Triumph Capital to offer CLO

Triumph Capital Advisors is in the pipeline with a $416,125,000 CLO deal, according to a source.

The Trinitas CLO II Ltd./Trinitas CLO II LLC offering includes $3,625,000 of class X notes (/AAA/); $173.75 million of class A-1 notes (/AAA/); $75 million of class A-2 notes (/AAA/); $44.75 million of class B-1 notes (/AA/); $19 million of class B-2 notes (/AA/); $22 million of class C notes (/A/); $20.25 million of class D notes (/BBB/); $17.5 million of class E notes (/BB/); $5.75 million of class F notes (/B/) and $34.5 million of subordinated notes.

Nomura Securities International Inc. is the placement agent.

Triumph Capital Advisors will manage the CLO, which is backed primary by broadly syndicated senior secured loans.

The CLO has a two-year non-call period and a four-year reinvestment period.

The notes are due in July 2026.

Triumph Capital Advisors, a subsidiary of Dallas-based Triumph Bancorp, Inc., was in the primary market on March 31 with the $400 million Trinitas CLO I, Ltd. transaction.

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