Investcorp, Partners Group refinance euro CLOs; Redding Ridge resets CLO as debut manager

By Cristal Cody

Tupelo, Miss., Aug. 3 – More than €15 billion of euro-denominated CLOs have returned to the primary market year to date to refinance, including deals from Investcorp Credit Management EU Ltd. and Partners Group (UK) Management Ltd., according to market sources.

Investcorp Credit Management EU priced €474.35 million of notes in a refinancing and reset of a vintage 2014 CLO.

Partners Group (UK) Management refinanced €328.25 million of notes from a 2015 deal.

Also, Redding Ridge Asset Management, LLC closed Thursday on $700 million of notes in its first CLO offering, according to a market source and a company press release.

The deal was a refinancing and reset of a CLO originally priced in 2014 by Apollo Credit Management LLC.

“We believe the successful closing of RR 1 demonstrates Redding Ridge's ability to execute CLO transactions that are consistent with the proven capabilities of a top tier manager,” Albert Huntington, Redding Ridge's head of capital markets and banking, said in the release.

More than $100 billion of vintage U.S. CLOs have been refinanced year to date, according to market sources.

Investcorp resets Harvest

Investcorp Credit Management EU priced €474.35 million of notes in a refinancing and reset of a vintage 2014 euro-denominated CLO deal, according to a market source.

Harvest CLO IX DAC priced €294.5 million of class A-R senior secured notes at Euribor plus 90 basis points at the top of the capital stack.

Credit Suisse Securities (Europe) Ltd. was the refinancing placement agent.

The maturity on the refinanced notes was extended to Feb. 15, 2030 from the original Aug. 15, 2028 maturity.

In the original €414.7 million transaction closed on July 16, 2014, the CLO sold €304.2 million of class A notes at Euribor plus 135 bps.

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

Partners Group refinances

Partners Group (UK) Management refinanced €328.25 million of notes due Aug. 4, 2028 in a vintage 2015 CLO offering, according to a market source.

Penta CLO 2 BV sold €234 million of class A-R senior secured floating-rate notes at Euribor plus 79 bps in the AAA-rated tranche.

BofA Merrill Lynch was the refinancing placement agent.

The original €44.1 million Penta CLO 2 transaction was issued on June 16, 2015. The CLO originally sold the €234 million of class A senior secured floating-rate notes at Euribor plus 130 bps.

Partners Group is a London-based private markets investment manager.

Redding Ridge prices

Redding Ridge Asset Management priced $700 million of notes due July 15, 2029 in the CLO offering, according to a market source and a company press release on Thursday.

The RR 1 Ltd. transaction was a refinancing and reset of the ALM X Ltd./ALM X LLC deal.

Redding will manage the renamed and refinanced CLO.

J.P. Morgan Securities LLC was the underwriter.

The maturity on the reset CLO was extended from the original Jan. 15, 2025 maturity.

Redding Ridge was established in 2016 as a capitalized manager vehicle to address risk retention regulations in the global CLO market.

The firm is a subsidiary of permanent capital vehicle Redding Ridge Holdings, LP, which has acquired equity investments from Apollo Global Management, LLC and entered into contracts with Apollo to access various resources.

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