CVC sells 415.6 million CLO; Bain refinances U.S. CLO; thin supply helps secondary spreads

By Cristal Cody

Tupelo, Miss., Feb. 13 – CVC Credit Partners European CLO Management LLP priced €415.6 million of notes in the primary market’s second new euro-denominated CLO offering of the year.

Intermediate Capital Managers Ltd. priced the €413.99 million previously reported St. Paul’s CLO VII DAC deal on Jan. 30.

In the refinancing space, Bain Capital Credit Ltd. priced $684.4 million of notes in a refinancing of a vintage 2013 CLO.

While new 2017 issuance totals nearly $4 billion in the broadly syndicated CLO market, more than $14 billion of vintage U.S. CLOs have been refinanced year to date, sources report.

More than €2 billion of euro-denominated CLOs have priced or been refinanced year to date, according to Prospect News data.

The lack of new CLO issuance is helping the secondary market with spreads stable to tighter in vintage deals, according to market sources.

“Limited new supply in the primary market continued to support bidding for secondary CLO debt notes,” BofA Merrill Lynch analysts said in a research note.

The U.S. secondary market saw about $588 million of BWIC volume over the past week.

Few bonds appeared on BWIC lists in the European secondary market, according to BofA Merrill Lynch.

“We tracked around €20 [million] of auction volumes, most of which was 2.0 bonds,” the analysts said.

© 2015 Prospect News.
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