Banco Santander prices €1.86 billion; KVK, Napier Park, Oaktree bring CLOs; spreads flat

By Cristal Cody

Tupelo, Miss., June 2 - Kramer Van Kirk Credit Strategies LP brought a $619.5 million collateralized loan obligation offering on Monday, according to an informed source.

The CLO priced the AAA rated notes at Libor plus 155 basis points.

Napier Park Global Capital LLC was in the market with a $626 million CLO, according to a source. The firm placed the AAA rated notes at Libor plus 141 bps.

In the European primary market, details emerged on new CLO deals from Banco Santander SA and Oaktree Capital Management (UK) LLP.

Banco Santander priced a €1.86 billion offering and sold the class A notes at Euribor plus 40 bps, according to an informed source.

Oaktree Capital sold an upsized €513.53 million CLO deal and placed the AAA tranche at Euribor plus 145 bps, according to a market source.

Spreads in the secondary market on vintage CLOs are mostly unchanged, according to a J.P. Morgan Securities LLC note.

U.S. BBB spreads are flat at Libor plus 340 bps. In the European CLO secondary market, BBB notes have widened 5 bps over the past week, according to J.P. Morgan.

KVK prices deal

Kramer Van Kirk Credit Strategies sold $619.5 million of notes due 2026 in a CLO offering on Monday, according to an informed source.

KVK CLO 2014-2 Ltd./KVK CLO 2014-2 LLC priced $4 million of class X floating-rate notes (/AAA/) at Libor plus 100 bps; $378 million of class A floating-rate notes (/AAA/) at Libor plus 155 bps; $67.5 million of class B floating-rate notes (/AA/) at 215 bps; $50 million of class C deferrable floating-rate notes (/A/) at Libor plus 300 bps; $32 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 375 bps; $28 million of class E deferrable floating-rate notes (/BB/) at Libor plus 475 bps and $60 million of subordinated notes.

Credit Suisse Securities (USA) LLC arranged the transaction.

Kramer Van Kirk Credit Strategies will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated senior secured corporate loans.

Kramer Van Kirk Credit Strategies sold the $584.27 million KVK CLO 2014-1 Ltd./KVK CLO 2014-1 LLC deal in March.

The Chicago-based credit asset management firm was in the primary market in 2013 with two CLO deals.

Napier Park Global Capital raises $626 million

Napier Park Global Capital priced $626 million of notes due 2026 in the Regatta IV Funding Ltd./Regatta IV Funding LLC CLO transaction, according to an informed source.

The CLO priced $3.5 million of class X floating-rate notes at Libor plus 100 bps, $291 million of class A-1 floating-rate notes at Libor plus 141 bps; $79.5 million of class A-2 floating-rate loans at Libor plus 153 bps; $75 million of class B floating-rate notes at Libor plus 201 bps; $37.5 million of class C floating-rate notes at Libor plus 295 bps; $38.25 million of class D floating-rate notes at Libor plus 350 bps; $33.75 million of class E floating-rate notes at Libor plus 495 bps and $10 million of class F floating-rate notes at Libor plus 550 bps.

The deal included $57.5 million of subordinated notes in the equity tranche.

Morgan Stanley & Co. LLC arranged the offering.

Napier Park Global Capital will manage the arbitrage cash flow CLO, which is backed primarily by first lien senior secured loans.

Proceeds from the offering will be used to purchase a portfolio of about $600 million of leveraged loans.

Napier Park Global Capital was last in the primary market in February with the $492.36 million Regatta III Funding LP/Regatta III Funding LLC deal.

The New York City-based global alternative asset manager brought one CLO transaction in 2013.

Banco Santander prices €1.86 billion

Banco Santander sold €1.86 billion of notes due 2050 in its CLO deal, according to an informed source.

FTA Pymes Santander 8 sold €1,317,500,000 of series A notes at Euribor plus 40 bps, €232.5 million of series B notes at Euribor plus 50 bps and €310 million of series C notes at Euribor plus 50 bps.

Banco Santander arranged the transaction.

Santander de Titulizacion S.G.F.T., SA will manage the CLO.

The CLO is secured by a portfolio of bank loans originated by Banco Santander to small and medium-sized enterprises and self-employed individuals based in Spain.

Banco Santander also priced the €500 million FTA Pymes Santander 9 transaction in May.

The global bank is based in Madrid, Spain.

Oaktree details €513.53 million Arbour CLO

Oaktree Capital Management (UK) priced an upsized €513.53 million of notes due 2028 in the Arbour CLO Ltd. offering, according to a market source.

The CLO sold €285.86 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 145 bps at the top of the capital structure.

The CLO also priced €35.95 million of 3.1% class B-1 senior secured fixed-rate notes (Aa2//AA); €27.32 million of class B-2 senior secured floating-rate notes (Aa2//AA) at Libor plus 200 bps; €15.41 million of 3.6% class C-1 senior secured deferrable fixed-rate notes (A2//A+); €14.72 million of class C-2 senior secured deferrable floating-rate notes (A2//A+) at Libor plus 250 bps; €27.05 million of class D senior secured deferrable floating-rate notes (Baa2//BBB+) at Libor plus 315 bps; €36.53 million of class E senior secured deferrable floating-rate notes (Ba2//BB+) at Libor plus 500 bps and €16.6 million of class F senior secured deferrable floating-rate notes (B2//B-) at Libor plus 575 bps.

The CLO placed €54.09 million of subordinated notes in the equity tranche.

The deal was upsized from €375 million.

Barclays Bank PLC was the placement agent.

London-based Oaktree Capital Management (UK) will manage the CLO.

The CLO is primarily backed by senior secured loans or senior secured bonds.

Oaktree Capital Management (UK), an affiliate of Los Angeles-based Oaktree Capital Management, LP, plans to use the proceeds to purchase a portfolio of European leveraged loans and bonds.

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