Pricing details emerge for Battalion, Covenant Credit Partners CLOs

By Rebecca Melvin

New York, Aug. 17 – Details emerged on a pair of collateralized loan obligations that priced recently and will close in September. Brigade Capital Management LP priced $655.75 million of fixed- and floating-rate notes due October 2029, and Covenant CLO Advisors LLC priced $411.84 million of notes due October 2029 in the firm’s first CLO transaction this year.

Brigade’s Battalion CLO XI Ltd./Battalion CLO XI LLC CLO sold $4 million of class X floating-rate notes (AAA) with a coupon of Libor plus 80 basis points and $395 million of class A floating-rate notes (AAA) with a coupon of Libor plus 125 bps at the top of the stack.

Morgan Stanley & Co. LLC arranged the offering.

Brigade Capital Management will remain as the CLO manager.

The CLO has a non-call period that ends April 2020 and a reinvestment period that ends April 2022.

The Covenant Credit Partners CLO III Ltd./Covenant Credit Partners CLO III LLC sold $256.5 million of class A floating-rate notes (//AAA) at Libor plus 128 bps and $44 million of class B floating-rate notes, which were not rated at the top of the capital structure.

Wells Fargo Securities LLC arranged the deal.

The CLO has a 2.1-year non-call period and a 4.1-year reinvestment period.

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