Carlyle returns to Europe with €402 million CLO deal; U.S. primary gears up for busy June

By Cristal Cody

Tupelo, Miss., June 3 - CELF Advisors LLP, part of Carlyle Group LP, brought a €402 million European collateralized loan obligation offering on Tuesday, according to a market source.

Carlyle Global Market Strategies Euro CLO 2014-2, Ltd. priced the AAA-rated tranche of notes at Euribor plus 135 basis points, 5 bps tighter than where the firm placed the triple A notes in the Carlyle Global Market Strategies Euro CLO 2014-1, Ltd. deal in February.

More than €4 billion of CLOs have priced in the European market in 2014.

3i Debt Management Investments Ltd. has a euro-denominated CLO deal in the pipeline, according to a market source.

The firm plans to price the Harvest IX CLO Ltd. transaction via Credit Suisse Securities (Europe) Ltd.

In the U.S. primary market on Tuesday, Kingsland Capital Management, LLC and Pinebridge Investments LLC priced CLO deals, according to market sources. Final pricing details were not available by press-time.

More than $12 billion of CLO deals are in the pipeline with June expected to be active, according to market sources.

Carlyle prices euro CLO

CELF Advisors priced €402 million of notes due 2027 in the European CLO deal, according to a market source.

Carlyle Global Market Strategies Euro CLO 2014-2 sold €234.6 million of class A-1 floating-rate notes (//AAA) at Euribor plus 135 bps, €31.4 million of class A-2A floating-rate notes (//AA+) at Euribor plus 200 bps and €11.6 million of 3.145% class A-2B fixed-rate notes (//AA+) at the top of the structure.

The CLO also sold €26 million of class B floating-rate notes (//A+) at Euribor plus 245 bps; €21 million of class C floating-rate notes (//BBB+) at Euribor plus 345 bps; €27.3 million of class D floating-rate notes (//BB) at Euribor plus 500 bps; €11 million of class E floating-rate notes (//B-) at Euribor plus 600 bps and €39.1 million of subordinated notes.

Citigroup Global Markets Ltd. was the placement agent.

CELF Advisors will manage the CLO, which is backed by a portfolio of senior secured obligations, corporate rescue loans, senior loans, mezzanine obligations, second-lien loans and high-yield bonds.

Proceeds from the offering will be used to purchase a portfolio of European leveraged loans and bonds.

London-based CELF Advisors was last in the European primary market in February with the €375 million Carlyle Global Market Strategies Euro CLO 2014-1, Ltd. deal.

Washington, D.C.-based Carlyle Group priced two European CLOs in 2013.

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