Valcour prices $259.95 million; Carlyle closes sixth CLO deal; European CLO 1.0 calls eyed

By Cristal Cody

Tupelo, Miss., Nov. 12 - Valcour Capital Management LLC priced a $259.95 million collateralized loan obligation offering of notes with spreads that ranged from Libor plus 97 basis points for the AAA slice to Libor plus 565 bps at the bottom of the capital structure, according to a market source.

Elsewhere on Tuesday, the Carlyle Group LP said the investment firm closed on its fourth U.S. CLO deal issued in 2013. The firm also has priced two European CLO transactions this year.

The $415.21 million Carlyle Global Market Strategies CLO 2013-4, Ltd. deal brought in October priced the AAA part at Libor plus 147 bps and the tranche at the bottom of the stack at Libor plus 520 bps, a source said.

Carlyle Global Market Strategies CLO 2013-4 will invest in corporate leveraged loans and high-yield bonds, the firm said.

Carlyle's third U.S. CLO fund of 2013, Carlyle Global Market Strategies CLO 2013-3, Ltd./Carlyle Global Market Strategies CLO 2013-3, LLC, closed in June at $517 million.

With the close of the latest CLO, Carlyle has raised more than $2.16 billion in the U.S. market in 2013. Since the beginning of 2011, the firm has raised about $5.86 billion of CLOs globally, including a €329.5 million European CLO that closed in October.

The Washington, D.C.-based global alternative asset manager's structured credit/CLO business has $17.5 billion in assets under management.

Valcour raises $260 million

Valcour Capital Management priced $259.95 million of notes due Dec. 31, 2023 in the offering via RBS Securities Inc., according to a market source.

The deal closed on Tuesday.

The Crown Point CLO II, Ltd./Crown Point CLO II, LLC sold $157.8 million of class A-1L senior secured floating-rate notes (Aaa/AAA/) at Libor plus 97 bps; $20.8 million of class A-2L senior secured floating-rate notes (/AA/) at Libor plus 193 bps; $19.8 million of class A-3L senior secured deferrable floating-rate notes (/A/) at Libor plus 286 bps; $18.2 million of class B-1L senior secured deferrable floating-rate notes (/BBB/) at Libor plus 355 bps; $10.9 million of class B-2L senior secured deferrable floating-rate notes (/BB-/) at Libor plus 460 bps; $6.8 million of class B-3L senior secured deferrable floating-rate notes (/B/) at Libor plus 565 bps and $25.65 million of subordinated notes.

Valcour Capital Management, a Stamford, Conn.-based credit management firm, will manage the CLO.

CLO redemptions forecast

In other market activity, the end of reinvestment periods and strong loan collateral performance "will prompt European CLO 1.0 redemptions," Moody's Investors Service said in a CLO report.

"With over 80% of the European CLO 1.0 deals we rate entering their reinvestment periods by the end of this year, deals will begin to amortize, diminishing equity returns, and strong leveraged loan performance will motivate equity holders to call CLO 1.0 deals," Moody's said.

"By selling loans to finance redemptions, the CLOs 1.0 that we identified ... could contribute nearly €2.9 billion of loan supply for new European CLO 2.0 deals."

The majority of available loans in European CLO 1.0 deals that Moody's identified as call candidates are in the United Kingdom, France, Germany and the Netherlands.

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