Europe’s Harvest X prices; Babson prices third CLO this year; secondary ‘fairly active’

By Rebecca Melvin

New York, Oct. 3 – Pricing emerged for European collateralized loan obligation Harvest X CLO Ltd. on Friday, which is a deal for €466.5 million of notes due November 2028. It was the European market’s second CLO priced this week. Pricing for Contego CLO II BV’s €359.3 million CLO was reported Thursday.

In the U.S., Babson Capital Management LLC priced a $724 million CLO due Jan. 15, 2026, representing the firm’s third CLO priced this year.

“The primary was active enough,” a New York-based trader said. “There were two Euro deals and a middle market deal that got priced tight for a middle market deal.”

The Ivy Hill Middle Market Credit Fund IX’s triple-AAA tranche priced at Libor plus 170 basis points.

“The new issue machine is running into technical difficulties because there is a lot of supply. Double-Bs and single-Bs blowing out some for the weaker and newer managers, but for the bigger players” the market is strong, the trader said.

For top tier players like Babson pricing is very tight. And for the European CLO managers pricing is even tighter.

The secondary market was “fairly active” this past week, the trader said, despite it being truncated somewhat due to the Jewish holiday bookends, including Rosh Hashana last week and Yom Kippur this week, the trader said.

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