LCM prices $460.73 million CLO, manager’s second of year; CVC offers €414.2 million

By Cristal Cody

Tupelo, Miss., July 11 – Deal activity is ramping up in both the U.S. and European CLO primary markets.

LCM Asset Management LLC sold $460.73 million of notes in the manager’s second CLO transaction of 2018.

In the euro-denominated primary market, CVC Credit Partners Group Ltd. is expected to price €414.2 million of notes in the firm’s second new issue of the year. CVC was last in the primary market on Dec. 1 with the €415.1 million CVC Cordatus Loan Fund X DAC deal, which closed on Jan. 31. CVC has refinanced three vintage European CLOs year to date.

LCM places 27 CLO

LCM Asset Management sold $460.73 million of notes due July 16, 2031 in the LCM 27 Ltd./LCM 27 LLC CLO deal, according to a market source.

The CLO priced the $272.25 million of class A-1 floating-rate notes at Libor plus 108 basis points.

Morgan Stanley & Co. LLC was the placement agent.

The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.

LCM has placed two new CLOs year to date.

The asset management firm, a subsidiary of Tetragon Financial Group Ltd., is based in New York City.

CVC markets XI CLO

CVC Credit Partners Group plans to price €414.2 million of notes due 2031 in the CVC Cordatus Loan Fund XI DAC transaction, according to a market source.

The deal includes €241 million of class A senior secured floating-rate notes (Aaa//AAA); €12 million of class B-1 senior secured floating-rate notes (Aa2//AA); €30 million of class B-2 senior secured fixed-rate notes (Aa2//AA); €28 million of class C senior secured deferrable floating-rate notes (A2//A); €20 million of class D senior secured deferrable floating-rate notes (Baa2//BBB); €27 million of class E senior secured deferrable floating-rate notes (Ba2//BB); €13 million of class F senior secured deferrable floating-rate notes (B2//B-) and €43.2 million of subordinated notes.

Barclays is the placement agent.

The deal is expected to close on Sept. 7.

The CLO is backed primarily by euro-denominated senior secured loans and bonds.

The manager is the credit management arm of London-based private equity firm CVC Capital Partners Ltd.

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