Alcentra prices €412.8 million CLO; AAAs modestly softer, Bs trade at widest range of year

By Cristal Cody

Tupelo, Miss., Nov. 2 – Alcentra Ltd. tapped the European CLO primary market for the second time this year with a €412.8 million nine-tranche offering of floating-rate, fixed-rate and subordinated notes.

The deal was the second European CLO transaction to price in October, bringing year to date issuance to €20.7 billion in 34 deals, which includes euro-denominated refinancings and issuance across Europe, according to Prospect News data.

European CLO spreads showed some tightening across the capital structure for both 1.0 and 2.0 deals over the previous week, according to a BofA Merrill Lynch report.

In the U.S. primary market, Neuberger Berman Fixed Income LLC priced $511 million of notes in the Neuberger Berman CLO XX, Ltd./Neuberger Berman CLO XX, LLC deal via Morgan Stanley & Co. LLC, a market source said. The senior tranche priced at Libor plus 154 basis points. Final pricing details were not available by press time.

U.S. CLO secondary trading was moderate with about $390 million of bonds on BWIC lists over the previous week, with activity concentrated in CLO 2.0 and 3.0 senior tranches, according to the BofA Merrill Lynch report.

CLO 2.0 AAA-rated notes were seen about 3 bps wider on the week at Libor plus 165 bps. CLO 2.0 B-rated notes were trading unchanged in the Libor plus 1,050 bps area, at the widest range of the year.

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