Partners Group sells €413.2 million CLO; LCM resets 2015 notes; ICG brings refinancing

By Cristal Cody

Tupelo, Miss., April 27 – In new issue supply, Partners Group (UK) Management Ltd. priced a €413.2 million euro-denominated broadly syndicated CLO on Friday.

KKR Credit Advisors (Ireland) Unlimited Co. also has priced the Avoca CLO XVIII DAC transaction via Barclays, according to a market source. Final pricing details were not immediately available.

In other market supply, U.S. CLO refinancing volume remains strong.

LCM Asset Management LLC sold $618.42 million of notes in a reset and refinancing of a 2015 CLO offering.

Also, ICG Debt Advisors LLC priced $414.35 million of notes in a reset and second refinancing of a 2014 deal.

In the primary market, both U.S. and European CLO BB-rated spreads “look cheap to high yield and to CLO BBBs,” Wells Fargo Securities, LLC analysts said in a note released on Friday.

“Since late January 2018, U.S. CLO BBB and BB primary spreads have widened 50-100 [basis points], while euro primary lower mezz spreads have widened only 25-60 bps,” the analysts said. “U.S. BBB and BB secondary spreads now stand at approximately 300 and 600 bps, respectively, with euro mezz spreads at 255 and 525 bps, respectively.”

Penta CLO 4 prices

Partners Group (UK) Management priced €413.2 million of notes due Dec. 17, 2030 in the new CLO, a source said.

Penta CLO 4 DAC sold €236 million of class A senior secured floating-rate notes at Euribor plus 79 bps at the top of the capital stack.

BNP Paribas Securities Corp. was the placement agent.

Partners Group is a London-based private markets investment manager.

LCM refinances CLO

LCM Asset Management refinanced $618.42 million of notes in a reset and refinancing of the LCM XVIII LP/LCM XVIII LLC deal, according to a market source.

The CLO priced the $351.35 million of class A-1R floating-rate notes at Libor plus 102 bps.

Natixis Securities Americas LLC is the refinancing agent.

The April 20, 2031 maturity on the reset notes was extended from the original April 20, 2027 maturity.

In the $609.63 million transaction originally issued March 31, 2015, the CLO had sold $349.75 million of the class A-1 floating-rate notes at Libor plus 151 bps.

The asset management firm is based in New York City.

ICG reprices CLO 2014-3

ICG Debt Advisors priced $414.35 million of notes in a reset and second refinancing of the ICG US CLO 2014-3, Ltd./ICG US CLO 2014-3 LLC deal, according to a market source and a notice of executed second supplemental indenture.

ICG US CLO 2014-3 sold $258.4 million of class A-1-RR senior secured floating-rate notes at Libor plus 103 bps in the senior tranche.

Morgan Stanley & Co. LLC was the refinancing placement agent.

The maturity on the notes was extended to April 25, 2031 from the original Jan. 25, 2027 due date.

The ICG US CLO 2014-3 deal was partially refinanced on May 30, 2017 in a $321.6 million transaction. The CLO sold $164.35 million of the class A-1A-R senior secured floating-rate notes at Libor plus 123 bps.

The CLO originally priced on Dec. 12, 2014. In that transaction, the CLO had priced $164.35 million of class A-1a senior secured floating-rate notes at Libor plus 150 bps.

The firm, a subsidiary of London-based parent company Intermediate Capital Group plc, is based in New York.

© 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.