By Rebecca Melvin
New York, Sept. 18 – Investcorp Credit Management EU Ltd. priced €457.5 million of notes due October 2031 in a refinancing of a broadly syndicated collateralized loan obligation deal, according to a market source.
Harvest CLO XVI DAC sold €3 million of class X senior secured floating-rate notes (Aaa//AAA) at Euribor plus 60 basis points, €273 million of class A senior secured floating-rate notes (Aaa//AAA) at Euribor plus 95 bps, €22 million of class B-1 senior secured floating-rate notes (Aa2//AA) at Euribor plus 185 bps and €20 million of 2.5% class B-2 senior secured fixed-rate notes (Aa2//AA) in the senior tranches.
The CLO also priced €31 million of class C senior secured deferrable floating-rate notes (A2/A) at Euribor plus 250 bps; €22 million of class D senior secured deferrable floating-rate notes (Baa2//BBB) at Euribor plus 360 bps; €24 million of class E senior secured deferrable floating-rate notes (Ba2//BB) at Euribor plus 575 bps; €12.5 million of class F senior secured deferrable floating-rate notes (B2//B-) at Euribor plus 765 bps and €45 million of subordinated notes.
Credit Suisse Securities (Europe) Ltd. is the placement agent.
Investcorp Credit Management EU will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The proceeds will be used to refinance notes that were originally issued in 2016. The €45 million subordinated notes will remain outstanding.
The deal is backed primarily by a portfolio of non-investment grade loans and other assets that the manager purchases from and trades in the primary and secondary markets.
The CLO manager is a subsidiary of Bahrain-based Investcorp Bank BSC.
| Issuer: | Harvest CLO XVI DAC
|
| Amount: | €457.5 million refinancing
|
| Maturity: | October 2031
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (Europe) Ltd.
|
| Manager: | Investcorp Credit Management EU Ltd.
|
| Call date: | October 2020
|
| Reinvestment period: | April 2023
|
| Settlement date: | October 2018
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | €35 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 60 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | €273 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 95 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | €22 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 185 bps
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA
|
|
|
| Class B-2 notes
|
| Amount: | €20 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 2.5%
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA
|
|
|
| Class C notes
|
| Amount: | €31 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 250 bps
|
| Ratings: | Moody’s: A2
|
| Fitch: A
|
|
|
| Class D notes
|
| Amount: | €27 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 360 bps
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB
|
|
|
| Class E notes
|
| Amount: | €24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 575 bps
|
| Ratings: | Moody’s: Ba2
|
| Fitch: BB
|
|
|
| Class F notes
|
| Amount: | €12.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 765 bps
|
| Ratings: | Moody’s: B2
|
| Fitch: B-
|
|
|
| Equity
|
| Amount: | €45 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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