By Cristal Cody
Tupelo, Miss., July 27 – Babson Capital Management (UK) Ltd. sold €415.1 million of notes due Aug. 31, 2023 in the manager’s first euro-denominated collateralized loan obligation deal in 2015, according to a market source.
Babson Euro CLO 2015-1 BV priced €206.7 million of the class A-1 senior secured floating-rate notes at Euribor plus 135 basis points, €5.3 million of 1.95% class A-2 senior secured fixed-rate notes and €26.4 million of class A-3 senior secured fixed/floating-rate notes at Euribor plus 135 bps.
The CLO also sold €32.6 million of class B-1 senior secured floating-rate notes at Euribor plus 210 bps, €10.6 million of 2.95% class B-2 senior secured fixed-rate notes, €22 million of class C senior secured deferrable floating-rate notes at Euribor plus 280 bps, €21.6 million of class D senior secured deferrable floating-rate notes at Euribor plus 360 bps, €31.2 million of class E senior secured deferrable floating-rate notes at Euribor plus 495 bps, €12.4 million of class F senior secured deferrable floating-rate notes at Euribor plus 610 bps and €46.3 million of subordinated notes.
Goldman Sachs International arranged the deal.
Babson Capital Management (US), a subsidiary of Babson Capital, will manage the CLO.
The CLO is backed primarily by euro-denominated senior secured obligations.
Proceeds from the deal will be used to purchase a €400 million portfolio of mostly euro-denominated leveraged loans and bonds.
Babson Capital has priced two U.S. CLOs this year to date.
The firm brought three U.S. CLOs and two euro-denominated CLOs in 2014.
Babson Capital Management (UK) is a London-based credit fund management firm.
| Issuer: | Babson Euro CLO 2015-1 BV
|
| Amount: | €415.1 million
|
| Maturity: | Aug. 31, 2023
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs International
|
| Manager: | Babson Capital Management (UK) Ltd.
|
| Pricing date: | July 27
|
| Settlement date: | Sept. 8
|
| Distribution: | Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | €206.7 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 135 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | €5.3 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 1.95%
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-3 notes
|
| Amount: | €26.4 million
|
| Securities: | Senior secured fixed/floating-rate notes
|
| Coupon: | Euribor plus 135 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | €32.6 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 210 bps
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA
|
|
|
| Class B-2 notes
|
| Amount: | €10.6 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 2.95%
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA
|
|
|
| Class C notes
|
| Amount: | €22 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 280 bps
|
| Ratings: | Moody’s: A2
|
| Fitch: A
|
|
|
| Class D notes
|
| Amount: | €21.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 360 bps
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB
|
|
|
| Class E notes
|
| Amount: | €31.2 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 495 bps
|
| Ratings: | Moody’s: Ba2
|
| Fitch: BB
|
|
|
| Class F notes
|
| Amount: | €12.4 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 610 bps
|
| Ratings: | Moody’s: B2
|
| Fitch: B-
|
|
|
| Equity
|
| Amount: | €46.3 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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