Investcorp prices €417.25 million CLO; middle-market, broadly syndicated AAA gap firms

By Cristal Cody

Tupelo, Miss., Oct. 3 – Investcorp Credit Management EU Ltd. priced €417.25 million of notes in a refinancing and reset of a 2015 CLO transaction.

Harvest CLO XII DAC sold €239 million of class A-R senior secured floating-rate notes at par to yield Euribor plus 87 bps at the top of the capital structure.

Meanwhile, about €30 billion of new, refinanced and reset euro-denominated CLOs have priced year to date, according to market sources.

In other activity, price tiering among managers in the U.S. primary market has lessened over the year even with the addition of nine new managers, Wells Fargo Securities LLC analysts said in a note on Tuesday.

“Tiering in U.S. BSL CLOs, especially in the AAA tranches, has greatly decreased since spring/early summer,” the analysts said.

For example, the analysts noted that “in late March 2017, Wellfleet [Credit Partners, LLC] priced their AAAs 9 [basis points] wide of Neuberger Berman [Investment Advisers LLC’s] AAAs; in August, the gap between Wellfleet’s AAAs and BlueMountain [Capital Management LLC]’s AAAs was only 5 bps.”

In addition, the gap between U.S. CLO middle market AAA spreads and broadly syndicated CLO AAA spreads has tightened to about 35 bps, down from 55 bps-65 bps in the first quarter, according to the note.

© 2015 Prospect News.
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