Babson upsizes CLO deal; Banco Santander prices €500 million CLO, preps €1.86 billion deal

By Cristal Cody

Tupelo, Miss., May 20 - In the U.S. primary market, Babson Capital Management LLC sold an upsized $514.21 million collateralized loan obligation deal, according to a market source.

The firm priced the AAA-rated tranche at Libor plus 149 basis points.

In the European CLO primary market, Banco Santander SA priced €500 million of floating-rate notes in the FTA Pymes Santander 9 deal, according to an informed source.

The Spanish bank also has another CLO transaction in the pipeline.

Banco Santander plans to price €1.86 billion of notes in the FTA Pymes Santander 8 offering, according to an informed source.

Babson upsizes

Babson Capital Management brought $514.21 million of notes in the CLO deal, upsized from $462.8 million, according to a market source.

Babson CLO 2014-I Ltd./Babson CLO 2014-I LLC priced $310 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Libor plus 149 bps; $64.1 million of class A-2 senior secured floating-rate notes (Aa2) at Libor plus 190 bps; $25.45 million of class B senior secured deferrable floating-rate notes (A2) at Libor plus 270 bps; $33 million of class C senior secured deferrable floating-rate notes (Baa3) at Libor plus 345 bps; $29.13 million of class D senior secured deferrable floating-rate notes (Ba3) at Libor plus 490 bps and $5.53 million of class E senior secured deferrable floating-rate notes (B2) at Libor plus 565 bps.

The deal included $47 million of subordinated notes in the equity tranche.

J.P. Morgan Securities LLC was the placement agent.

Babson Capital Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured loans and eligible investments.

The notes are due in June 2026.

Babson Capital Management was in the U.S. primary market in 2013 with two CLO deals.

The global asset manager is based in Boston, Springfield, Mass., and Charlotte, N.C.

Banco Santander prices

Banco Santander brought a €500 million two-tranche offering of floating-rate notes due Jan. 21, 2041 in the CLO deal, according to an informed source.

FTA Pymes Santander 9 priced €331.7 million of class A notes (/A/DBRS: AA) at Euribor plus 75 bps and €168.3 million of class B notes (/B-/DBRS: CCC) at Euribor plus 80 bps.

Banco Santander arranged the transaction.

Santander de Titulizacion S.G.F.T., SA will manage the CLO.

The CLO is secured by a portfolio of bank loans originated by Banco Santander to small and medium-sized enterprises and self-employed individuals based in Spain.

Proceeds from the deal will be used to purchase the collateral pool at closing.

Banco Santander is a global bank based in Madrid, Spain.

Banco Santander preps deal

Banco Santander also plans to offer €1.86 billion of notes due 2050 in the FTA Pymes Santander 8 deal, according to an informed source.

The offering includes €1,317,500,000 of series A notes (DBRS: A), €232.5 million of series B notes (DBRS: BB) and €310 million of series C notes (DBRS: C).

Banco Santander will arrange the transaction.

Santander de Titulizacion S.G.F.T. will manage the CLO.

The CLO is secured by a portfolio of bank loans originated by Banco Santander to small and medium-sized enterprises and self-employed individuals based in Spain.

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