Investcorp Credit Management to price €467.3 million notes in refinancing of Harvest CLO XV

By Cristal Cody

Tupelo, Miss., May 8 – Investcorp Credit Management EU Ltd. is offering €467.3 million of notes in a refinancing and reset of a vintage 2016 collateralized loan obligation offering, according to a market source.

The Harvest CLO XV DAC offering includes €3 million of class X senior secured floating-rate notes (Aaa//AAA); €233.4 million of class A-1A-R senior secured floating-rate notes (Aaa//AAA); €30 million of class A-1B-R senior secured floating-rate notes (Aaa//AAA); €15 million of class A-2-R senior secured floating-rate notes (Aaa//AAA); €41.6 million of class B-1-R senior secured floating-rate notes (Aa2//AA) and €5 million of class B-2-R senior secured fixed-rate notes (Aa2//AA).

The CLO also will price €31.5 million of class C-R senior secured deferrable floating-rate notes (A2//A); €24.2 million of class D-R senior secured deferrable floating-rate notes (Baa2//BBB); €23.1 million of class E-R senior secured deferrable floating-rate notes (Ba2//BB) and €13.5 million of class F-R senior secured deferrable floating-rate notes (B2//B-) and €47 million of subordinated notes, which includes €42 million of the original subordinated notes.

Morgan Stanley & Co. International plc is the refinancing placement agent.

Investcorp Credit Management EU will manage the CLO.

The maturity on the notes will be extended to November 2030 from the original May 22, 2029 maturity.

The reset CLO has a two-year non-call period and a four-year reinvestment period.

In the original Harvest CLO XV priced March 29, 2016, the CLO sold €232 million of class A floating-rate notes at Euribor plus 150 basis points; €54 million of B floating-rate notes at Euribor plus 225 bps; €26 million of class C floating-rate notes at Euribor plus 335 bps; €21 million of class D floating-rate notes at Euribor plus 475 bps; €25 million of class E floating-rate notes at Euribor plus 650 bps; €13 million of class F floating-rate notes at Euribor plus 750 bps and €42 million of subordinated notes.

Proceeds from the refinancing will be used to redeem the original notes on May 22.

Investcorp priced two new euro-denominated CLOs and refinanced six vintage European CLOs in 2017.

The CLO manager is a subsidiary of Bahrain-based Investcorp Bank BSC.

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