Covenant Credit Partners readies to price $527.5 million CLO deal

By Cristal Cody

Tupelo, Miss., June 17 – Covenant Credit Partners LLC plans to price $527.5 million of notes due 2026 in the firm’s first collateralized loan obligation deal, according to a market source.

The Covenant Credit Partners CLO I Ltd./Covenant Credit Partners CLO I LLC offering includes $3.5 million of class X floating-rate notes (Aaa/AAA/); $305 million of class A floating-rate notes (Aaa/AAA/); $65 million of class B floating-rate notes (/AA/); $40 million of class C deferrable floating-rate notes (/A/); $26 million of class D deferrable floating-rate notes (/BBB/); $26.5 million of class E deferrable floating-rate notes (/BB-/) and $61.5 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

Covenant Credit Partners will manage the CLO.

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

The vehicle is backed primarily by broadly syndicated senior secured loans.

The deal is expected to close on July 31.

Covenant Credit Partners is an alternative credit investment management firm based in Charlotte, N.C.

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