Details emerge on Avoca Capital, Hildene, Golub CLOs; middle-market deals increase

By Cristal Cody

Tupelo, Miss., May 14 - Details emerged Wednesday on new CLO deals from Avoca Capital Holdings and Hildene Leveraged Credit, LLC, while Golub Capital BDC, Inc. brought a middle-market CLO offering.

Avoca Capital Holdings priced €518.5 million of notes due 2027 in the Avoca CLO XI Ltd. deal, according to a market source.

The CLO sold the AAA-rated tranche of notes at Euribor plus 140 basis points.

Hildene Leveraged Credit brought the $413.75 million Hildene CLO II, Ltd./Hildene CLO II LLC vehicle, which sold the class A notes at Libor plus 145 bps, according to a market source.

In the CLO middle market, Golub Capital BDC affiliate GC Advisors LLC priced a $401.8 million 12-year deal, according to the company.

The Golub CLO priced the AAA notes at Libor plus 175 bps.

Seven middle-market CLO deals totaling $2.9 billion have priced year to date, according to market sources.

NXT Capital, LLC announced on Wednesday that it closed on the $357.44 million NXT Capital CLO 2014-1 LLC deal, which is secured primarily by middle-market senior secured loans.

NXT Capital CLO 2014-1 LLC is the firm's third CLO transaction in the past three years.

"Pricing on the AAA-rated securities of Libor +1.75% represents the best execution for an exclusively middle-market CLO in 2014," NXT Capital said in a news release.

The CLO priced $188.75 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 175 bps.

Chicago-based NXT Capital was in the market in 2013 with the $357.94 million NXT Capital CLO 2013-1, LLC deal.

"With the closing of this latest transaction, NXT has topped $1 billion in CLO issuance," Neil Rudd, NXT Capital's chief financial officer, said in the statement.

Avoca raises €518.5 million

Avoca Capital Holdings priced the €518.5 million Avoca CLO XI deal via Morgan Stanley & Co. International plc, according to a market source.

The CLO sold €275 million of class A senior secured floating-rate notes (Aaa/AAA/) at Euribor plus 140 bps; €18 million of 3.235% class B-1 senior secured fixed-rate notes (Aa2/AA/) and €61 million of class B-2 notes (Aa2/AA/) at Euribor plus 200 bps at the top of the capital structure.

The CLO also priced €24.5 million of class C senior secured deferrable floating-rate notes (A2/A/) at Euribor plus 260 bps; €31.5 million of class D senior secured deferrable floating-rate notes (Baa2/BBB/) at Euribor plus 350 bps; €32.5 million of class E senior secured deferrable floating-rate notes (Ba2/BB/) at Euribor plus 470 bps and €17.5 million of class F senior secured deferrable floating-rate notes (B2/B-/) at Euribor plus 590 bps.

The deal included €58.5 million of subordinated notes in the equity tranche.

Avoca Capital Holdings, a subsidiary of Avoca Capital, will manage the CLO.

The CLO is backed primarily by euro-denominated first-lien senior secured obligations and eligible investments.

Avoca Capital, a Dublin-based credit investment management firm that was acquired by KKR & Co. LP earlier this year, brought the €310.75 million Avoca Capital CLO X Ltd. deal in November.

Hildene prices CLO

Hildene Leveraged Credit priced $413.75 million of notes due 2026 in the CLO deal via BofA Merrill Lynch, according to a market source.

Hildene CLO II sold $252 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 145 bps; $24.25 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 220 bps; $25 million of 4.44% class B-2 senior secured fixed-rate notes (Aa2); $22 million of class C deferrable floating-rate notes (A2) at Libor plus 290 bps; $24.25 million of class D deferrable floating-rate notes (Baa3) at Libor plus 370 bps; $19.75 million of class E deferrable floating-rate notes (Ba3) at Libor plus 510 bps; $6.5 million of class F deferrable floating-rate notes (B3) at Libor plus 595 bps and $40 million of subordinated notes.

Hildene Leveraged Credit will manage the CLO, which is backed primarily by first-lien senior secured corporate loans and eligible investments.

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

The firm priced the $309.75 million Hildene CLO I Ltd./Hildene CLO I LLC deal in December.

Hildene Leveraged Credit is part of Hildene Capital Management, LLC, an asset management firm based in Stamford, Conn.

Golub's middle-market CLO

GC Advisors placed $401.8 million of notes due 2026 in the CLO deal, according to the company.

Golub Capital Partners BDC CLO 2014 LLC priced $191 million of class A-1 senior secured floating-rate notes (Aaa expected/AAA/) at par to yield Libor plus 175 bps and $20 million of class A-2 senior secured floating-rate notes (Aaa expected/AAA/) at par to yield Libor plus 145 bps, according to a company news release. The class A-2 notes have a step-up coupon of Libor plus 145 bps for the first 18 months and then Libor plus 195 bps thereafter.

The CLO also priced $35 million of class B secured deferrable floating-rate notes (Aa2 expected/AA/) at par to yield Libor plus 250 bps, $37.5 million of class C secured deferrable floating-rate notes (A2 expected//) at par to yield Libor plus 350 bps and $118.3 million of interest notes in the equity tranche.

Wells Fargo Securities LLC arranged the transaction.

GC Advisors will manage the CLO.

The portfolio is backed primarily by a revolving pool of middle market senior secured loans.

GC Investment Management priced the $410.5 million Golub Capital Partners CLO 19 (B) Ltd./Golub Capital Partners CLO 19 (B) LLC deal on April 7 and the $453.12 million Golub Capital Partners CLO 18 (M) Ltd./Golub Capital Partners CLO 18 (M) LLC transaction on Feb. 27.

The affiliate of New York-based middle market lender Golub Capital brought three CLO deals in 2013.

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