3i prices €414.7 million CLO, AAAs at 125 bps spread; Europe volume tops €2 billion

By Cristal Cody

Tupelo, Miss., Feb. 26 – 3i Debt Management Investments Ltd. tapped the European primary market with a €414.7 million CLO offering, a source said on Thursday.

The euro-denominated deal, backed primarily by senior secured loans, prohibits bond purchases to comply with the U.S. Volker risk retention requirement, according to Fitch Ratings.

The transaction brings euro-denominated CLO volume to €2 billion across five deals priced year to date, data from Prospect News shows.

Previously in the market, Blackstone/GSO Debt Funds Management Europe Ltd. priced the €411.1 million Dartry Park CLO Ltd. transaction, while Pramerica Investment Management Ltd. sold €442.6 million of notes in the Dryden 35 Euro CLO 2014 BV transaction.

Carlyle Group LP and Commerzbank AG, London Branch also tapped the European markets so far in 2015.

Carlyle brought the €500 million Carlyle Global Market Strategies Euro CLO 2015-1 Ltd. deal.

Commerzbank priced €233.4 million of notes in the Bosphorus CLO I Ltd. transaction.

U.S. and European CLO managers are forecast to bring €20 billion to €25 billion of issuance in 2015.

3i Debt prices €414.7 million

3i Debt Management Investments priced a €414.7 million nine-part CLO offering that included fixed- and floating-rate notes, according to a market source.

Harvest CLO XI Ltd. sold €229.6 million of class A-1 floating-rate notes at Euribor plus 125 basis points at the top of the capital structure.

At the bottom of the capital stack, the CLO priced €10.7 million of class F floating-rate notes at Euribor plus 650 bps.

Natixis SA was the placement agent.

3i Debt Management will manage the CLO.

The notes are due March 26, 2029.

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

3i Debt Management brought three euro-denominated CLO transactions in 2014.

As of December, the affiliate of London-based 3i Group plc had €7.4 billion across 25 CLOs under management.

© 2015 Prospect News.
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