By Cristal Cody
Tupelo, Miss., Nov. 12 – Investcorp Credit Management EU Ltd. sold €425.15 million of notes in a refinancing of a vintage 2017 euro-denominated collateralized loan obligation deal, according to a market source and a notice to noteholders on Tuesday.
Harvest CLO XVII DAC sold €2 million of class X senior secured floating-rate notes at Euribor plus 25 basis points at par, €279 million of class A-R senior secured floating-rate notes at Euribor plus 92 bps at par, €30.5 million of B-1-R senior secured floating-rate notes at Euribor plus 160 bps at par and €13.5 million of 2.15% class B-2-R senior secured fixed-rate notes at par.
The CLO also sold €26.5 million of class C-R senior secured deferrable floating-rate notes at Euribor plus 240 bps at par; €32 million of class D-R senior secured deferrable floating-rate notes at Euribor plus 395 bps at par; €25.75 million of class E-R senior secured deferrable floating-rate notes at 96 with a coupon of Euribor plus 618 bps and €12.9 million of class F-R senior secured deferrable floating-rate notes at 94 with a coupon of at Euribor plus 901 bps.
The deal includes an additional €3 million of subordinated notes in the equity tranche.
BNP Paribas Securities Corp. was the refinancing 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 by two years to May 11, 2032.
In the original €413.65 million transaction issued May 11, 2017, the CLO priced €242 million of class A senior secured floating-rate notes at par to yield Euribor plus 87 bps, €43.5 million of B-1 senior secured floating-rate notes at par to yield Euribor plus 150 bps and €10 million of 2.15% class B-2 senior secured fixed-rate notes at par.
The CLO also sold €21.5 million of class C senior secured deferrable floating-rate notes at par to yield Euribor plus 210 bps; €20 million of class D senior secured deferrable floating-rate notes at par to yield Euribor plus 315 bps; €24 million of class E senior secured deferrable floating-rate notes at 94.07 and a coupon of Euribor plus 495 bps and €9.75 million of class F senior secured deferrable floating-rate notes at 93.13 and a coupon of Euribor plus 705 bps.
The original deal included €42.9 million of subordinated notes, which will remain outstanding.
Proceeds were used to redeem the original floating- and fixed-rate notes.
The CLO is collateralized primarily by senior secured loans and bonds.
Investcorp Credit Management EU is a subsidiary of Bahrain-based Investcorp Bank B.S.C.
| Issuer: | Harvest CLO XVII DAC
|
| Amount: | €425.15 million refinancing
|
| Maturity: | May 11, 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BNP Paribas Securities Corp.
|
| Manager: | Investcorp Credit Management EU Ltd.
|
| Call feature: | Two years
|
| Pricing date: | Sept. 27
|
| Settlement date: | Nov. 12
|
|
|
| Class X notes
|
| Amount: | €2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 25 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-R notes
|
| Amount: | €279 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 92 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-1-R notes
|
| Amount: | €30.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 160 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa2
|
| S&P: AA
|
|
|
| Class B-2-R notes
|
| Amount: | €13.5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 2.15%
|
| Price: | Par
|
| Rating: | Moody’s: Aa2
|
| S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | €26.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 240 bps
|
| Price: | Par
|
| Rating: | Moody’s: A2
|
| S&P: A
|
|
|
| Class D-R notes
|
| Amount: | €32 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 395 bps
|
| Price: | Par
|
| Rating: | Moody’s: Baa3
|
| S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | €25.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 618 bps
|
| Price: | 96
|
| Rating: | Moody’s: Ba3
|
| S&P: BB-
|
|
|
| Class F-R notes
|
| Amount: | €12.9 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 901 bps
|
| Price: | 94
|
| Rating: | Moody’s: B3
|
| S&P: B-
|
|
|
| Equity
|
| Amount: | €3 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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