Invesco brings $617.85 million CLO; Neuberger Berman, CVC Credit Partners in deal pipeline

By Cristal Cody

Tupelo, Miss., June 13 – Details of Invesco Senior Secured Management, Inc.’s $617.85 million collateralized loan obligation transaction emerged on Friday, with the CLO placing the AAA tranche at Libor plus 145 basis points, according to a market source.

More than $53 billion of CLOs have priced year to date as issuance remains strong in June.

“After a busy start to 2014, the global CLO market has kicked into an even higher gear in June,” Barclays analysts said in a note on Friday.

More than $7 billion of CLOs have priced over the month, including the largest CLO deal since the financial crisis.

A week ago, Apollo Credit Management (CLO) LLC priced $1.5 billion of notes in the ALM XIV, Ltd. CLO transaction. The deal follows Onex Credit Partners LLC’s $1 billion OCP CLO 2014-6 Ltd./OCP CLO 2014-6 Corp. offering on May 22.

“Indications from the pipeline suggest that this record will not stand long,” the Barclays note said. “Meanwhile, Europe has priced three deals this month for slightly more than €1.3 billion in total proceeds, making June the busiest month of the year less than halfway through.”

About $13 billion of CLO transactions are in the pipeline, according to a market source.

Neuberger Berman Fixed Income LLC intends to place a $569.75 million CLO, according to a market source.

CVC Credit Partners, LLC joins the pipeline with a $514.05 million deal, a market source said.

Invesco taps market

Invesco Senior Secured Management priced $617.85 million of notes due July 15, 2026 in the A Voce CLO, Ltd./A Voce CLO LLC deal, according to a market source.

The CLO sold $194 million of class A-1A senior secured floating-rate notes (Aaa//AAA) at Libor plus 145 bps; $192.4 million of class A-1B senior secured floating-rate notes (Aaa//AAA) at Libor plus 146 bps; $64.1 million of class A-2A senior secured floating-rate notes (Aa2) at Libor plus 200 bps; $5 million of 4.294% class A-2B senior secured fixed-rate notes (Aa2); $28.8 million of class B deferrable floating-rate notes (A2) at Libor plus 290 bps; $33.7 million of class C deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $34.2 million of class D deferrable floating-rate notes (Ba3) at Libor plus 480 bps; $5.1 million of class E deferrable floating-rate notes (B2) at Libor plus 550 bps and $60.55 million of subordinated notes.

Citigroup Global Markets Inc. was the placement agent.

Invesco Senior Secured Management will manage the CLO.

Proceeds from the deal will be used to purchase assets to reach a target portfolio of about $600 million of primarily leveraged loans.

Invesco Senior Secured Management, a subsidiary of Atlanta-based Invesco, Ltd., was in the market on April 2 with the $315.75 million refinancing of the Avalon IV Capital, Ltd./Avalon IV Capital LLC transaction. The firm priced the $669.75 million Limerock CLO II Ltd./Limerock CLO II LLC deal in February.

Neuberger Berman on tap

Neuberger Berman Fixed Income intends to offer $569.75 million of notes due Aug. 15, 2025 in the Neuberger Berman CLO XVII, Ltd./Neuberger Berman CLO XVII, LLC transaction, according to a market source.

The deal includes $4 million of class X senior secured floating-rate notes (Aaa/AAA/); $338.25 million of class A senior secured floating-rate notes (Aaa/AAA/); $74.25 million of class B senior secured floating-rate notes (/AA/); $41.25 million of class C deferrable floating-rate notes (/A/); $28,875,000 of class D deferrable floating-rate notes (/BBB-/); $26,125,000 of class E deferrable floating-rate notes (/BB-/) and $57 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

Neuberger Berman Fixed Income will manage the CLO.

The CLO is backed primarily by a revolving pool of broadly syndicated senior secured loans.

Neuberger Berman was last in the primary market on Feb. 11 with the $572 million Neuberger Berman CLO XVI, Ltd./Neuberger Berman CLO XVI, LLC transaction.

The Chicago-based firm, part of Neuberger Berman Group, LLC, priced two CLO deals in 2013.

CVC offers $514.05 million

CVC Credit Partners plans to bring a $514.05 million CLO deal, according to a market source.

The Apidos CLO XVIII/Apidos CLO XVIII LLC transaction includes $315 million of class A-1 floating-rate notes (//AAA); $66.1 million of class A-2 floating-rate notes; $21.9 million of class B floating-rate notes; $29.9 million of class C floating-rate notes; $27.9 million of class D floating-rate notes; $5.6 million of class E floating-rate notes and $47.65 million of subordinated notes.

J.P. Morgan Securities LLC is the placement agent.

CVC Credit Partners will manage the CLO.

The notes are due 2026.

The CLO is collateralized primarily by first-lien senior secured loans.

Proceeds from the transaction will be used to purchase a portfolio of leveraged loans.

CVC Credit Partners’ last CLO offering was the $519.25 million Apidos CLO XVII/Apidos CLO XVII LLC deal that priced on March 20.

The credit management arm of London-based private equity firm CVC Capital Partners Ltd. brought three CLO transactions in 2013.

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