Guggenheim brings CLO fixed-rate mezzanine notes; European volume to date €23.5 billion

By Cristal Cody

Tupelo, Miss., Nov. 13 – Guggenheim Partners Europe Ltd. priced a €406.5 million CLO private placement offering of notes due Nov. 16, 2028 that included fixed-rate mezzanine tranches, according to a market source.

Year-to-date European CLO volume is about €23.5 billion priced in 37 deals, including broadly syndicated transactions and issuance backed by small and medium-sized enterprises, according to data compiled by Prospect News.

New European broadly syndicated CLO volume is about €11.3 billion so far in the year, according to BofA Merrill Lynch.

Market analysts forecast about €15 billion of euro-denominated broadly syndicated CLO issuance in 2015.

Additional details emerged on Guggenheim Partners Europe’s €406.5 million CLO private placement offering of notes due Nov. 16, 2028 via Citigroup Global Markets Inc.

Cork Street CLO Designated Activity Co. priced €127.3 million of class A-1A senior secured floating-rate notes (Aaa//AAA) at Euribor plus 145 basis points in the senior tranche.

The mezzanine tranches included €24 million of 3.6% class B senior secured deferrable fixed-rate notes (A2//A); €21 million of 4.5% class C senior secured deferrable fixed-rate notes (Baa2//BBB) and €26 million of 6.2% class D senior secured deferrable fixed-rate notes (Ba2//BB).

Proceeds from the deal will be used to purchase a €400 million portfolio of European leveraged loans and bonds.

Guggenheim Partners Europe is a Dublin-based subsidiary of global asset manager Guggenheim Partners, LLC.

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