Eaton Vance prices $458.73 million CLO; Investcorp sells Harvest CLO XVI in refinancing

By Rebecca Melvin

New York, Sept. 18 – New collateralized loan obligation supply was forthcoming again on Tuesday although there has been speculation that issuance may drop off.

Tapering is a possibility as CLO managers say it is becoming difficult to source equity buyers for new issue deals, according to BofA Merrill Lynch research.

Increasingly it appears as if the one risk factor of concern will not materialize soon and that is trade war escalation. Meanwhile the positive fundamental and technical picture for securitized products creates spread tightening bias, while a compressed arb means CLO tapering is possible, according to BofA Merrill Lynch’s Securitization Weekly dated Sept. 15.

Pricing emerged on a new issue and a refinancing.

Eaton Vance Management priced $458,725,000 of notes due October 2030 in its first new CLO of the year.

Eaton Vance CLO 2018-1 Ltd./Eaton Vance CLO 2018-1, LLC sold $276.75 million of class A-1 senior secured floating-rate notes at Libor plus 113 basis points; $15.75 million of class A-2 senior secured floating-rate notes at Libor plus 140 bps; $49.5 million of class B senior secured floating-rate notes at Libor plus 170 bps; $26.5 million of class C senior secured deferrable floating-rate notes at Libor plus 215 bps; $27.25 million of class D senior secured deferrable floating-rate notes at Libor plus 310 bps; $18.25 million of class E secured deferrable floating-rate notes at Libor plus 580 bps; $44,725,000 of subordinated notes.

Wells Fargo Securities LLC was the underwriter.

Boston-based Eaton Vance will manage the CLO.

In addition, Investcorp Credit Management EU Ltd. priced €457.5 million of notes due October 2031 in a refinancing of a broadly syndicated CLO deal

Harvest CLO XVI DAC sold €3 million of class X senior secured floating-rate notes (Aaa//AAA) at Euribor plus 60 bps, €273 million of class A senior secured floating-rate notes (Aaa//AAA) at Euribor plus 95 bps, €22 million of class B-1 senior secured floating-rate notes (Aa2//AA) at Euribor plus 185 bps and €20 million of 2.5% class B-2 senior secured fixed-rate notes (Aa2//AA) in the senior tranches.

The CLO also priced €31 million of class C senior secured deferrable floating-rate notes (A2/A) at Euribor plus 250 bps; €22 million of class D senior secured deferrable floating-rate notes (Baa2//BBB) at Euribor plus 360 bps; €24 million of class E senior secured deferrable floating-rate notes (Ba2//BB) at Euribor plus 575 bps; €12.5 million of class F senior secured deferrable floating-rate notes (B2//B-) at Euribor plus 765 bps and €45 million of subordinated notes.

Credit Suisse Securities (Europe) Ltd. is the placement agent.

The manager Investcorp Credit Management EU is a London-based subsidiary of Bahrain’s Investcorp Bank BSC.

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