Investcorp refinances €413.85 million 2015 CLO notes; euro AAAs firm; secondary active

By Cristal Cody

Tupelo, Miss., June 14 – Investcorp Credit Management EU Ltd. sold €413.85 million of notes in a refinancing and reset of a vintage 2015 euro-denominated CLO.

More than €10 billion of European CLOs have been refinanced year to date, according to market sources.

Euro CLO AAA-rated notes have tightened about 5 basis points on the month to the Euribor plus 75 bps area, according to a Wells Fargo Securities, LLC report.

In U.S. securitized secondary trading, volume totaled $86.87 million in investment-grade CBO/CDO/CLO issues and $115.61 million in non-high-grade securities on Tuesday, according to Trace.

On Monday, $25.32 million of investment-grade issues and $441.7 million of non-high-grade securities were traded.

In its deal, Investcorp Credit Management EU priced €413.85 million of notes in a refinancing and reset of the Harvest CLO XI DAC deal, according to a market source.

Harvest CLO XI priced €242.42 million of class A-R senior secured floating-rate notes at Euribor plus 92 bps at the top of the capital structure.

Barclays was the placement agent.

Investcorp Credit Management EU, formerly known as 3i Debt Management Investments Ltd., will manage the CLO.

The maturity on the refinanced notes was extended to June 26, 2030 from the original March 1, 2029 due date.

Proceeds will be used to redeem the original notes on June 26.

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