Cairn, Halcyon, Cassa di Risparmio, Banco Santander tap Europe; CLOs mixed in secondary

By Cristal Cody

Tupelo, Miss., Dec. 8 – Euro-denominated CLO issuance received a year-end boost with new deals priced by Cairn Capital Ltd., Halcyon Loan Advisors (U.K.) LLP, Cassa di Risparmio di Asti SpA and Banco Santander SA, according to market sources.

Cairn Capital brought a €309.5 million transaction and sold the AAA-rated tranche of notes at Euribor plus 125 basis points, a source said.

Halcyon Loan Advisors (U.K.) priced a €309.9 million offering and placed the AAA notes at Euribor plus 127 bps, according to a source.

Oaktree Capital Management (UK) LLP also was in the European primary market with the Arbour CLO II Ltd. transaction, a source said.

Final pricing details were not available by press time.

Italian bank Cassa di Risparmio di Asti priced a €683.2 million CLO offering and placed the AAA slice at Euribor plus 80 bps, a market source said.

Spanish global bank Banco Santander tapped the market with a €4.56 billion CLO deal and priced the AAA-rated tranche at Euribor plus 106 bps, according to a market source.

More than €13 billion of euro-denominated CLOs have priced year to date, according to data compiled by Prospect News.

CLO secondary mixed

In the European secondary market, CLO notes are unchanged since the end of November, according to a J.P. Morgan Securities LLC research note.

Euro-denominated AAA notes traded flat at Euribor plus 88 bps, while BB notes were unchanged at Euribor plus 320 bps.

In the U.S. CLO secondary market, benchmark AAA notes have eased 5 bps since the end of November to Libor plus 85 bps, according to the note. Benchmark BB notes traded 10 bps better from the end of the previous month to Libor plus 490 bps, JPMorgan said.

Cairn prices €309.5 million

Cairn Capital priced €309.5 million of notes due Jan. 30, 2028 in the Cairn CLO IV BV deal, according to a market source.

Cairn CLO IV BV sold €175 million of class A-1 senior secured floating-rate notes at Euribor plus 125 bps at the top of the structure.

The CLO sold €8 million of class F senior secured deferrable floating-rate notes at Euribor plus 600 bps at the bottom of the capital stack.

Credit Suisse Securities (Europe) Ltd. was the placement agent.

Cairn Loan Investments LLP will manage the CLO.

Cairn plans to the use the proceeds from the deal to purchase a €300 million portfolio of mainly European leveraged loan and high-yield bonds.

The London-based credit asset management firm was previously in the primary market in 2013 with the €300.5 million Cairn CLO III BV transaction.

Halcyon raises €309.9 million

Halcyon Loan Advisors (U.K.) sold €309.9 million of notes due Jan. 15, 2027 in a CLO offering via Natixis SA, according to a market source.

Halcyon Loan Advisors European Funding 2014 BV priced €174.6 million of class A senior secured floating-rate notes at Euribor plus 127 bps at the top of the deal.

Lower in the structure, the CLO sold €9.8 million of class F senior secured deferrable floating-rate notes at Euribor plus 650 bps.

Halcyon Loan Advisors (U.K.) is a subsidiary of New York City-based Halcyon Loan Management LLC.

Banco Santander taps market

Banco Santander sold €4.56 billion of notes due Aug. 20, 2057 in the FTA Pymes Santander 10 deal, according to a market source.

The CLO priced €2,907,000,000 of series A floating-rate notes (A2//DBRS: AA) at Euribor plus 106 bps, €893 million of series B floating-rate notes (Baa3//DBRS: BB) at Euribor plus 423 bps and €760 million of series C floating-rate notes (Ca//DBRS: C) at Euribor plus 496 bps.

Banco Santander arranged the transaction.

Santander de Titulizacion S.G.F.T., SA will manage the CLO.

Banco Santander was previously in the CLO primary market in May with the €1.86 billion FTA Pymes Santander 8 and the €500 million FTA Pymes Santander 9 deals.

The global bank is based in Madrid, Spain.

Italian CLO eyed

Cassa di Risparmio di Asti brought a €683.2 million CLO deal, according to a market source.

The Asti PMI Srl CLO sold €410 million of class A floating-rate notes at Euribor plus 80 bps and €273.2 million of class B floating-rate notes at Euribor plus 100 bps.

Bimini Advisors LLC was the placement agent.

Cassa di Risparmio di Asti will manage the CLO.

The notes are due July 28, 2064.

The CLO is a cash flow securitization of mortgage and non-mortgage loans to Italian small- and medium-sized enterprises by Cassa di Risparmio di Asti.

Cassa di Risparmio di Asti is an Asti, Italy-based bank.

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