Regatta XII prices $408.6 million new CLO; Euro-Galaxy III refinancing takes shape

Chicago, Sept. 5 – The collateralized loan obligation primary market was a little quieter on Thursday with just one reported deal pricing.

Regatta Loan Management LLC priced $408.6 million in a seven-part deal. The new portfolio was issued by Regatta XII Funding Ltd./Regatta XII Funding LLC.

The secondary market for CBO/CDO/CLO deals was also quieter on Wednesday, the most recent day data is available, according to Trace numbers.

On Wednesday, investment-grade volume was at $54.01 million. The average price was 98.5.

The non-investment grade sector picked up a little with $58.53 million exchanging hands. The average price was 95.

In the new Regatta XII portfolio, the transaction will be collateralized by a minimum of 90% senior secured loans.

A maximum of 65% of the loans in the collateral pool can be covenant-lite. And, up to 7.5% can be debtor-in-possession obligations.

Compared to other broadly syndicated CLOs from the second quarter of 2019, this CLO had a lower weighted average cost of debt, a higher weighted average spread and a lower weighted average recovery rate, according to S&P Global Ratings.

Meanwhile, Euro-Galaxy III CLO BV moved a step closer to a secondary refinancing of its vintage 2014 transaction.

Eight classes of notes are due to be refinanced.

The earlier notes are set to be redeemed on Sept. 24.

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