European CLO new deal, refinancing action light; KKR refinances €469 million Avoca CLO

By Cristal Cody

Tupelo, Miss., Feb. 20 – New issue and refinancing action remains light year to date in the European CLO primary market but is picking up, according to market sources.

Details emerged on a new refinancing transaction from KKR Credit Advisors (Ireland) Unlimited Co., which repriced €469 million of notes from a 2015 euro CLO deal.

More than €2 billion of euro-denominated CLOs have priced year to date, according to market sources.

KKR sells AAAs at 71 bps

KKR Credit Advisors (Ireland) refinanced €469 million of notes in a reset of the Avoca CLO XV DAC CLO on Tuesday, according to a market source and notices to noteholders.

The CLO priced €3 million of class X senior secured floating-rate notes at Euribor plus 25 basis points and €309.5 million of class A-R senior secured floating-rate notes at Euribor plus 71 bps at the top of the capital stack.

Deutsche Bank AG, London Branch was the refinancing placement agent.

The maturity on the refinanced notes and the original equity notes was extended to April 15, 2031 from the original Jan. 15, 2029 maturity.

The original €516.8 million transaction was issued Nov. 5, 2015.

Proceeds were used to redeem the original notes on Tuesday.

KKR Credit Advisors (Ireland) refinanced three vintage euro CLOs in 2017.

The credit investment management firm is based in Dublin.

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