Investcorp Credit prices €489.1 million CLO; Neuberger Berman plans second refinancing

By Cristal Cody

Tupelo, Miss., Jan. 27 – Investcorp Credit Management EU Ltd. priced an upsized €489.1 million new European broadly syndicated CLO on Monday.

A couple of dollar-denominated CLO deals also priced last week as the primary market starts to reopen with year-to-date issuance now of $1.3 billion, BofA Securities Inc., analysts reported in a research note released Monday.

New issue supply is expected to be slow over the final part of January and in February, the analysts said.

The refinancing space is staying active with more than $2 billion already priced year to date.

Coming up, Neuberger Berman Investment Advisers LLC plans to price $368 million of notes in a second refinancing of a vintage 2013 CLO.

Meanwhile in the secondary market, U.S. CLO BWIC volume was $624 million for the past week ended Friday, down from $1.5 billion in the week prior, according to BofA.

“Spreads tightened in the IG part of the capital stack by 3 [basis points]-5 [bps] on the back of low bid volume and healthy demand,” the analysts said.

CLO AAAs were quoted at Libor plus 106 bps in the secondary market on Friday, 3 bps tighter on the week.

“From a supply-demand perspective, the lack of new CLO issuance so far this year has been supportive of secondary spreads,” the BofA analysts said.

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