THL prices; Banif-Banco plans €833.2 million CLO; secondary busy; mezzanine spreads widen

By Cristal Cody

Tupelo, Miss., June 15 – New pricing action in the CLO market includes a $616 million offering from THL Credit Advisors LLC, according to market sources on Monday.

THL Credit Advisors priced the THL Credit Wind River 2015-1 CLO Ltd./THL Credit Wind River 2015-1 LLC deal via Credit Suisse Securities (USA) LLC. The AAA notes priced at Libor plus 150 basis points. Final pricing details were not available by press time.

Boston-based THL Credit Advisors brought three CLO transactions in 2014.

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

Coming up in the European primary market, Banif-Banco Internacional do Funchal, SA plans to price a €833.2 million SME CLO transaction.

About €12 billion of euro-denominated CLOs have priced year to date following Tikehau Capital Europe Ltd.’s €354.7 million debut CLO brought in the previous week.

Secondary activity picked up over the last week with about three-quarters of the paper from the CLO 2.0 space and more than $800 million from senior AAA notes, according to a BofA Merrill Lynch market note.

“The U.S. CLO secondary market had a busy week with BWIC volumes totaling over $2 billion by original face amounts,” BofA Merrill Lynch analysts said. “Lower down at the triple-B to single-B levels, spreads widened by 10-15 [bps] amid broader-market volatility and profit-taking by hedge funds and asset managers after having tightened by 60-90 [bps] since the beginning of the year.”

European CLO spreads widened over the past week, with “several accounts selling BB and B exposures in particular and finding limited price support,” the BofA Merrill Lynch analysts said. “After a couple of weeks of spread widening, lower mezzanine bonds have lost much of the gains from spread tightening earlier in the year.”

Banif-Banco offers SME CLO

Banif-Banco Internacional do Funchal plans to price €833.2 million of notes due Jan. 28, 2044 in a SME CLO transaction, according to a market source.

The Gamma-Sociedade de Titularizacao de Creditos, SA Atlantes SME No. 5 deal includes €440 million of class A floating-rate notes (/A-/); €35.6 million of class B floating-rate notes (/BBB/); €164.4 million of non-rated class C floating-rate notes; €160 million of non-rated class D variable-rate notes and €33.2 million of non-rated class S notes.

StormHarbour Securities LLP and Banif-Banco Internacional do Funchal are the joint arrangers.

Banif-Banco Internacional will manage the SME CLO.

The deal is backed by secured and unsecured current accounts and term loans that Banif-Banco Internacional originated and granted to small and midsize companies in Portugal.

Banif-Banco Internacional is a Funchal, Portugal-based bank and financial services group.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.