Commerzbank sells €233.4 million CLO; quiet week forecast; energy-linked notes active

By Cristal Cody

Tupelo, Miss., Feb. 9 – The European market is awakening following the year’s first CLO deal from Carlyle Group LP in January and a new offering from Commerzbank AG, London Branch, according to informed sources on Monday.

Commerzbank priced a €233.4 million seven-part CLO transaction and placed the AAA-rated tranche of notes at Euribor plus 115 basis points, a source said.

Looking ahead over the week, primary activity is expected to be limited with participants out at an industry conference, sources report.

In the secondary market, CLO mezzanine and equity notes with high energy exposures have increased in trading, J.P. Morgan Securities LLC analysts said in a note.

“Within the 2014 vintage, for example, we see a range of BBs trading anywhere from 660 bps to the very high 700s,” the analysts said.

Commerzbank prices CLO

Commerzbank AG, London Branch priced €233.4 million of notes due Nov. 10, 2023 in the Bosphorus CLO I Ltd. transaction, according to a market source.

The CLO sold €135.4 million of class A floating-rate notes at Euribor plus 115 bps at the top of the capital structure.

Sterne, Agee & Leach, Inc. and Sterne Agee UK LLP were co-arrangers.

Commerzbank will manage the static CLO.

The transaction is backed mainly by broadly syndicated senior secured loans and bonds.

Proceeds from the deal will be used to purchase a €230 million portfolio of euro-denominated leveraged loans and bonds.

Commerzbank is a London-based subsidiary of Commerzbank AG.

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