Tikehau prices €354.7 million debut CLO; ICG sells $410.75 million; BBB, BB spreads widen

By Cristal Cody

Tupelo, Miss., June 12 – Tikehau Capital Europe Ltd. tapped the market with a €354.7 million debut CLO deal, according to a market source on Friday.

About €12 billion of euro-denominated CLOs have priced year to date following the transaction, Prospect News data shows.

In the U.S. market, ICG Debt Advisors LLC brought a $410.75 million CLO offering, a source said.

More than $58 billion of U.S. CLOs have priced year to date, according to the data.

In the secondary market, CLO spreads have started to move wider, Wells Fargo Securities, LLC senior analyst Dave Preston said in a note on Friday.

“BBB spreads are approximately 10-15 basis points wider, and BB spreads have widened approximately 15-25 bps,” Preston said. “We believe that the widening is due to the continued large amount of secondary supply, combined with the fact that BBB and BB spreads were at or close to post-crisis tights.”

In its deal, Tikehau Capital Europe sold €354.7 million of notes due June 30, 2028 in a CLO transaction, according to a market source.

Tikehau CLO BV priced €161 million of class A-1 senior secured floating-rate notes at Euribor plus 135 bps at the top of the capital structure.

Goldman Sachs International arranged the offering.

Tikehau Capital Europe is the CLO manager.

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