Halcyon prices €338 million CLO; Ares sells €417 million; euro issuance tops 2015 volume

By Cristal Cody

Eureka Springs, Ark., Nov. 21 – Two new CLOs priced in the European primary market, pushing year-to-date volume past 2015 levels, according to market sources on Monday.

Halcyon Loan Advisors (UK) LLP priced €338 million of notes in the offering.

Ares European Loan Management LLP sold €417 million of notes in its transaction.

“European new issue continues to chug along with six consecutive weeks of 1-2 Euro CLOs,” J.P. Morgan Securities LLC analysts said in a note. “The euro tally is already €2.0 [billion] for November MTD, the highest monthly volume since July.”

Year to date, €13.68 billion of euro-denominated CLOs have priced, compared to €13.55 billion of issuance in 2015, according to a BofA Merrill Lynch note released on Monday.

Halcyon prices €338 million

Halcyon Loan Advisors (UK) priced €338 million of notes due Jan. 20, 2030 in the new CLO on Friday, according to a market source.

Halcyon Loan Advisors European Funding 2016 DAC sold €188.2 million of class A-1 senior secured floating-rate notes at par to yield Euribor plus 103 basis points and €10 million of 1.09% class A-2 senior secured fixed-rate notes at par in the senior tranches.

Citigroup Global Markets Inc. was the placement agent.

The transaction is collateralized primarily by senior secured euro-denominated leveraged loans and bonds.

The CLO manager is a subsidiary of New York City-based Halcyon Loan Management LLC.

Ares sells €417 million

Ares European Loan Management brought €417 million of notes due Feb. 17, 2030 in its CLO deal, according to an informed source.

Ares European CLO VIII BV sold €218 million of class A-1 senior secured floating-rate notes at par to yield Euribor plus 96 bps and €20 million of 1.1% class A-2 senior secured fixed-rate notes at par at the top of the capital stack.

Goldman Sachs International arranged the deal.

The notes are backed mainly by euro-denominated first-lien senior secured loans and eligible investments.

Ares European Loan Management is an asset management firm based in London.

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