ICG prints $411 million CLO; volume thin; U.S., Europe fourth-quarter primary action eyed

By Cristal Cody

Tupelo, Miss., Oct. 14 – ICG Debt Advisors LLC tapped the CLO primary market with a $411 million offering of notes and loans structured to comply with European risk retention regulations.

ICG placed the AAA-rated notes at Libor plus 152 basis points in the transaction.

While CLO volume has remained thin in September and October, market sources expect issuance to pick as the year winds down, particularly in the European primary market.

“Q3 European CLO issuance was down from the year-ago quarter, the first time decrease from the year-ago quarter since the market reemerged in 2012,” Moody’s Investors Service said in a report on Wednesday. “Despite this slow down, we expect issuance to remain strong in Q4 2015 given the solid pipeline.”

Moody’s said it is analyzing 13 proposed European broadly syndicated CLO deals and a refinancing of a European CLO 2.0 deal.

In the U.S. CLO market, Moody’s said it is analyzing 24 proposed CLO transactions, four of which are backed by small- and medium-sized enterprise loans.

ICG Debt Advisors priced $411 million of notes and loans due Jan. 15, 2028 in the ICG US CLO 2015-2, Ltd./ICG US CLO 2015-2 LLC deal, according to a market source.

The CLO sold $196 million of class A-1 senior term notes at Libor plus 152 bps in the senior tranche.

Morgan Stanley & Co. LLC was the placement agent.

© 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.