CVC prices $402.5 million CLO; Neuberger Berman prints; MidCap refinances; spreads flat

By Cristal Cody

Tupelo, Miss., Oct. 13 – The CLO primary market is remaining active in October, along with the refinancing space.

CVC Credit Partners, LLC priced $402.5 million of notes in the manager’s second new dollar-denominated broadly syndicated CLO of the year and on the heels of its second new euro-denominated CLO, which priced in September.

“To price two deals in the U.S. during such a volatile year displays the disciplined and targeted approach of the platform,” Kevin O'Meara, senior managing director and portfolio manager at CVC Credit Partners, said in a news release. “We are pleased with our asset ramp for Apidos XXXIV and the recent improving market conditions created a window to price our liabilities at an attractive financing rate.”

CVC was last in the primary market in September with the €382.45 million CVC Cordatus Loan Fund XVIII DAC offering, which is expected to close on Nov. 6.

Due to the cohesion of CVC’s U.S. and European teams, “we were able to run broadly concurrent processes for Apidos XXXIV and Cordatus XVIII, enabling various operational synergies to boost the speed and efficiency of both pricings,” Gretchen Bergstresser, global head of performing credit at CVC Credit Partners, said in the release.

In other new broadly syndicated CLO issuance, Neuberger Berman Loan Advisers LLC priced $506.4 million of notes in the manager’s third deal of the year.

Meanwhile, MidCap Financial Services Capital Management LLC priced $651.83 million of notes in a refinancing of a vintage 2017 middle-market CLO.

The deal pipeline is expected to remain active.

More than $60 billion of dollar-denominated broadly syndicated CLOs and more than €14 billion of euro-denominated CLOs have priced year to date, according to market sources.

CLO refinancing volume totals about $30 billion so far this year.

Looking at the secondary market, BWIC volume rose to $829 million over the past week from $762 million in the prior week, according to a BofA Securities, Inc. research note released on Monday.

AAA-rated traches made up 77% of the notional on lists.

Spreads were flat across the capital stack over the week ended Friday, according to the BofA note.

AAAs headed out on Friday unchanged at Libor plus 145 basis points.

BBB tranches were steady at Libor plus 475 bps.

CVC brings Apidos CLO

CVC Credit Partners priced $402.5 million of notes in the Apidos CLO XXXIV/Apidos CLO XXXIV LLC offering, according to a news release.

Deutsche Bank Securities Inc. was the placement agent.

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

CVC Credit Partners has priced two new dollar-denominated CLOs, two new euro-denominated CLOs and one vintage dollar-denominated CLO refinancing year to date.

The subsidiary of London-based CVC Capital Partners Ltd. is based in New York City.

Neuberger Berman prices

Neuberger Berman Loan Advisers priced $506.4 million of notes due Oct. 20, 2032 in the new transaction, according to market sources.

Neuberger Berman Loan Advisers CLO 38, Ltd./Neuberger Berman Loan Advisers CLO 38, LLC sold $307.5 million of the class A floating-rate notes at Libor plus 130 bps.

Barclays was the placement agent.

Neuberger Berman Loan Advisors II LLC is the CLO manager.

The notes are backed primarily by broadly syndicated first-lien senior secured corporate loans.

Neuberger Berman has priced three new CLOs and refinanced three vintage CLOs year to date.

The Chicago-based investment management firm is an affiliate of Neuberger Berman Group, LLC.

MidCap refinances

MidCap Financial Services Capital Management priced $651,825,000 of notes in the middle-market CLO refinancing, according to market sources.

Woodmont 2017-1 Trust sold $373.75 million of class A-1-R senior secured floating-rate notes at Libor plus 200 bps at the top of the capital stack.

Wells Fargo Securities LLC was the refinancing agent.

In the original $506.2 million offering issued Feb. 23, 2017, the CLO sold $284.3 million of class A floating-rate notes at Libor plus 205 bps.

The maturity on the refinanced notes was extended to Oct. 18, 2032.

The CLO is backed by middle-market senior secured term loans.

Bethesda, Md.-based MidCap Financial Services is managed by Apollo Capital Management, LP, a subsidiary of Apollo Global Management LLC.

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