Bain prices upsized CLO; dollar reissue supply slows; Investcorp pushes back CLO reprint

By Cristal Cody

Tupelo, Miss., Oct. 29 – Bain Capital Credit U.S. CLO Manager LLC priced an upsized $604 million of notes in the Bain Capital Credit CLO 2019-4 Ltd./Bain Capital Credit CLO 2019-4 LLC deal on Friday.

The transaction was upsized from an initially expected $505.1 million offering, according to a market source.

Credit Suisse Securities (USA) LLC was the placement agent.

Final pricing details were not immediately available.

The CLO is collateralized mostly by broadly syndicated senior secured loans from issuers based in the United States or Canada.

The deal is expected to close in December.

Bain Capital, part of Boston-based asset management firm Bain Capital Credit, LP, has priced four new CLOs year to date.

Euro refinancing supply eyed

Elsewhere, dollar-denominated CLO refinancing volume has slowed with no deals reported priced in the previous week, but supply continues at an active pace in the euro market, BofA Merrill Lynch analysts said in a research note.

“We expect the refi volume to continue to rise and potentially reach €9 [billion] or nearly triple 2018FY volume of €3.5 [billion],” the analysts said.

The dollar-denominated market has seen refinancing volume of $39 billion year to date, according to the note.

Meanwhile, Investcorp Credit Management EU Ltd. announced in a notice to noteholders on Tuesday that it would push back its second refinancing of a 2015 euro-denominated CLO to Nov. 29.

The refinancing of the Harvest CLO XI DAC deal was expected to occur on Wednesday.

The CLO manager issued €413.85 million of notes in the first refinancing of the Harvest CLO XI deal on June 23, 2017. The original €414.7 million CLO was issued March 26, 2015.

In the first refinancing, the CLO sold €242.42 million of class A-R senior secured floating-rate notes at Euribor plus 92 basis points; €19.16 million of B-1-R senior secured floating-rate notes at Euribor plus 150 bps; €10 million of 2.15% class B-2 senior secured fixed-rate notes; €20 million of class B-3-R senior secured floating-rate notes at Euribor plus 177 bps; €22.58 million of class C-R senior secured deferrable floating-rate notes at Euribor plus 210 bps; €20.64 million of class D-R senior secured deferrable floating-rate notes at Euribor plus 320 bps; €22.1 million of class E-R senior secured deferrable floating-rate notes at Euribor plus 510 bps; €11.33 million of class F-R senior secured deferrable floating-rate notes at Euribor plus 655 bps and €45.6 million of subordinated notes.

The second refinancing is expected to include class A-R, B-1-R, B-2-R, B-3-R and C-R tranches.

Investcorp Credit Management EU is a subsidiary of Bahrain-based Investcorp Bank BSC.

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