Brigade Capital prices €414.4 million CLO; Europe secondary market active; AAAs soften

By Cristal Cody

Tupelo, Miss., Dec. 17 – Brigade Capital Europe Management, LLP priced €414.4 million of euro-denominated notes in the CLO manager’s second European CLO offering of 2018.

The firm was the last in the primary market in the spring when it priced the €410.55 million Armada Euro CLO II DAC transaction. In that deal, which closed on April 26, 2018 when spreads were much tighter, €193 million of class A-1 senior secured floating-rate notes priced at Euribor plus 76 basis points.

“December issuance has thus far been relatively muted on the back of wider pricing levels,” BofA Merrill Lynch analysts said in a note released on Monday.

Secondary trading was heavy in the European CLO market last week with more than €500 million of bonds on BWIC lists, according to the note.

The heavy trading volume pushed spreads wider with AAA euro notes in the Euribor plus 115 bps area, 11 bps wider than at the end of November, the note said.

Brigade Capital Europe Management sold €414.4 million of notes due 2031 in the offering that closed on Monday.

At the top of the capital structure, Armada Euro CLO III DAC sold €218 million of class A-1 senior secured floating-rate notes at Euribor plus 101 bps.

Citigroup Global Markets Ltd. was the placement agent.

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