CVC prices €411 million CLO; additional Europe issuance forecast; Telos 2016-7 CLO in works

By Cristal Cody

Eureka Springs, March 17 – CVC Credit Partners Group Ltd. tapped the European CLO primary market with a €411 million deal, bringing euro-denominated year to date issuance to €1.24 billion from three deals, according to sources and Prospect News data on Thursday.

CVC priced five tranches of floating-rate notes and one tranche of subordinated notes in the transaction.

Two more euro-denominated CLO deals may price before the end of the month, a market source said.

Across the pond, Tiptree Financial Inc. is marketing $252.37 million of notes in a CLO deal that has been in the works since August. Tiptree Financial announced in August that it had sold $39.7 million of subordinated notes in two CLOs and contributed $30 million of the proceeds to a new loan warehouse facility to create a new CLO.

CVC prices €411 million CLO

CVC Credit Partners Group priced €411 million of notes due April 15, 2029 in the CVC Cordatus Loan Fund VI Ltd. transaction, according to a market source.

The CLO sold €248 million of class A senior secured floating-rate notes at Euribor plus 150 basis points in the senior tranche.

Credit Suisse Securities (Europe) Ltd. arranged the deal.

The CLO is backed primarily by senior secured loans and senior secured bonds.

Proceeds from the deal will be used to purchase a €400 million portfolio of mostly European leveraged loans and bonds.

CVC Credit Partners, the credit management arm of London-based private equity firm CVC Capital Partners Ltd., brought one euro-denominated CLO transaction in 2015.

Tiptree to bring Telos 2016-7

Tiptree Financial plans to price $252.37 million of notes due 2025 in the Telos 2016-7, Ltd./Telos 2016-7 LLC offering, according to a market source.

The deal includes $156.5 million of class A floating-rate notes (/AAA); $37 million of class B floating-rate notes (/AA); $14.5 million of class C deferrable floating-rate notes (/A); $12 million of class D deferrable floating-rate notes (/BBB-); $5 million of class E deferrable floating-rate notes (/BB-) and $27.37 million of subordinated notes.

SG Americas Securities LLC is the underwriter.

Telos Asset Management LLC will manage the CLO.

The CLO has a two-year non-call period. The CLO will not have a reinvestment period.

The deal is backed mainly by a static pool of broadly syndicated senior secured loans.

Credit manager Telos Asset Management, a subsidiary of New York-based Tiptree, was last in the CLO primary market in 2014.

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