Avoca prices €415 million, second European deal in August; middle market slow to recover

By Cristal Cody

Tupelo, Miss., Aug. 5 – More than €9 billion of European collateralized loan obligation deals have priced year to date following the month’s second euro-denominated offering, according to data compiled by Prospect News.

Avoca Capital Holdings sold €415 million of notes in the Avoca CLO XII Ltd. transaction via Credit Suisse Securities (Europe) Ltd., a market source said on Tuesday.

Avoca Capital priced the €240 million AAA-rated tranche at Euribor plus 134 basis points, according to the market source.

The Dublin-based credit investment management firm was acquired by KKR & Co. LP in February.

Avoca’s offering follows Intermediate Capital Group plc’s €361.4 million transaction on Friday.

London-based Intermediate Capital Group opened the month with the St. Paul’s CLO V Ltd. deal via J.P. Morgan Securities plc, a source said.

The St. Paul’s CLO V vehicle placed the AAA-rated slice at Euribor plus 134 bps.

Market analysts forecast about €10 billion to €15 billion of total European CLO issuance for 2014.

Year to date, about 124 U.S. broadly syndicated CLOs totaling $69 billion have priced, while 10 middle-market CLOs totaling $3.9 billion have been issued, Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Jason McNeilis said in a note.

“The ratio of middle-market CLOs has decreased over the past three years to 5.4% in 2014 from 8.0% in 2012,” the analysts said.

© 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.