CLO deal pace steady; CVC brings €400 million CLO; American Money Management prices

By Cristal Cody

Tupelo, Miss., Nov. 20 – U.S. and European CLO issuance remains on track to close out the year on a strong note following new issuance, according to market sources.

American Money Management Corp. brought $507 million of notes due Dec. 9, 2026 in the AMMC CLO XV, Ltd./AMMC CLO XV, Corp. transaction, according to a market source.

CVC Credit Partners Group Ltd. priced €400 million of notes due 2028 in a European offering, according to a market source.

“We expect that the pace of U.S. issuance will remain strong for the fourth quarter and surpass $100 billion for the year, a post-crisis high,” Moody’s Investors Service said in a CLO report. “We expect that European BSL CLO issuance in [the] fourth quarter will exceed the third-quarter level.”

More than €12 billion of European CLOs have priced year to date, according to data compiled by Prospect News.

Moody’s said it is analyzing 34 proposed U.S. CLOs, including one backed by a portfolio of small and medium sized enterprise loans, though some will not close until 2015 “because of a lack of loan supply.”

In the European market, Moody’s said it analyzing 12 CLO transactions in the pipeline.

“In addition to BSLs, our pipeline includes a French SME CLO and a balance sheet deal,” according to the Moody’s report.

AMMC CLO XV prices

American Money Management priced $507 million of notes due Dec. 9, 2026 in the AMMC CLO XV transaction, according to a market source.

The CLO sold $6 million of class A-X floating-rate notes at Libor plus 130 bps and $320 million of class A-1 floating-rate notes at Libor plus 153 bps at the top of the deal structure. The CLO priced $29 million of class E floating-rate notes at Libor plus 698 bps at the bottom of the capital stack.

Jefferies LLC arranged the transaction.

Proceeds from the deal will be used to purchase a portfolio of about $500 million of leveraged loans.

American Money Management, the Cincinnati-based subsidiary of insurance holding company American Financial Group, Inc., previously priced the $410.3 million AMMC CLO XIV, Ltd./AMMC CLO XIV, Corp. deal in June.

CVC Credit Partners prices

CVC Credit Partners Group sold €400 million of notes due 2028 in the CVC Cordatus Loan Fund IV Ltd. transaction, according to a market source.

The CLO priced €225.4 million of class A senior secured floating-rate notes at Euribor plus 130 bps at the top of the capital structure. The CLO sold €12.9 million of class F senior secured deferrable floating-rate notes at Euribor plus 650 bps at the bottom of the stack.

Goldman Sachs International was the placement agent.

Proceeds from the deal will be used to purchase a €388.6 million portfolio comprised mainly of European leveraged loans and bonds.

CVC Credit Partners, the credit management arm of London-based private equity firm CVC Capital Partners Ltd., was last in the European primary market in March with the €450 million CVC Cordatus Loan Fund III 2014-3 Ltd. transaction.

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