La Caixa prices €2.53 billion SME CLO; Ares places $408.5 million deal; CVC in pipeline

By Cristal Cody

Tupelo, Miss., Nov. 30 – CLO issuance remains light, but a few deals are getting done before the year closes, including a new European SME CLO that priced over the U.S. Thanksgiving Day holiday.

Spanish banking group la Caixa brought a €2.53 billion two-part CLO.

Also in primary activity, details emerged on Ares Management LLC’s $408.5 million CLO offering.

Looking ahead, CVC Credit Partners, LLC intends to price a $499.8 million CLO, its fourth new CLO deal of the year.

CLOs returned 1.4% to 6.4% across the capital structure in the first half of the year, but performance has weakened in the second half of the year, J.P. Morgan Securities LLC analysts said in a note.

“Performance took a turn for the worse in 15H2 as broader volatility and risk-off impacted CLO returns, which are -0.1% to -5.7%,” the analysts said.

Meanwhile the level of distressed-priced credit is at its highest point since mid-2012, according to the note.

“Within CLOs, the percent of loans trading below $90 is at 10.6%,” the analysts said.

La Caixa priced a €2.53 billion two-part CLO backed by small- and medium-sized enterprise loans, according to a market source.

FonCaixa Pymes 7, FT sold €2,150,500,000 of class A floating-rate notes at Euribor plus 125 basis points and €379.5 million of class B floating-rate notes at Euribor plus 150 bps in the deal.

CaixaBank is the underwriter.

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