CVC closes; CLO volume in June on strong track; year to date supply beats year ago period

By Cristal Cody

Tupelo, Miss., June 20 – CVC Credit Partners Group Ltd. closed Wednesday on its previously reported €333.2 million reset and second refinancing of the vintage 2014 CVC Cordatus Loan Fund III DAC transaction.

The CLO had priced the €235.5 million of class A-1-R senior secured floating-rate notes at Euribor plus 87 basis points.

New and refinanced European supply has picked up in June with two new previously reported issues also priced in the past week.

Year to date, more than €11 billion of new CLOs have priced, while about €7 billion of vintage CLOs have been refinanced and/or reset, according to market sources.

U.S. CLO also issuance remains on a stout track in June, according to a market report on Wednesday.

“CLO creation has remained strong in recent weeks and for the week ended 8th June, it stands at $2.2 [billion],” BofA Merrill Lynch credit strategists Neha Khoda and Oleg Melentyev said in the note. “YTD CLO issuance of $56.4 [billion] is considerably higher than the 2017 YTD issuance of $39.7 [billion].”

Adding $1.2 billion of coupons and retail flows of $427 million to CLO volume, gross demand stood at $3.8 billion for the week ended June 8, according to the note.

About another $72 billion of vintage CLOs also have been refinanced and/or reset this year, according to market sources.

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