Intermediate Capital prices euro CLO; Jefferies prints; Ellington closes CLO offering

By Cristal Cody

Tupelo, Miss., March 8 – Details emerged on new CLO issuance in the European and CLO primary markets.

Intermediate Capital Managers Ltd. priced €410.1 million of notes in its first deal of the year.

Jefferies Finance LLC priced a $259.3 million three-tranche revolver CLO.

Meanwhile, Ellington CLO Management LLC closed Friday on a $478.49 million broadly syndicated CLO offering, the manager’s fourth deal since it was formed in 2017.

U.S. CLO volume year to date totals more than $18 billion, while more than €2 billion of euro CLOs have priced this year, market sources report.

Fitch Ratings said in a report on Friday that the “overlap between European and U.S. CLO portfolios remains limited even as leveraged loan issuers cater to both regions through local currency offerings.”

From the European perspective, the overlap of obligors held in both European and U.S. broadly syndicated CLO portfolios and issued by managers active on both markets is 17% on average, or about 26 issuers in common, Fitch said. From the U.S. CLO perspective, the overlap is approximately 7% lower due to the larger number of obligors in those portfolios.

St. Paul’s CLO X prints

Intermediate Capital Managers priced €410.1 million of notes due April 22, 2032 in the St. Paul’s CLO X DAC transaction, according to market sources.

The CLO sold €248 million of class A senior secured floating-rate notes at Euribor plus 114 basis points in the senior tranche.

Goldman Sachs International was the placement agent.

The CLO is collateralized primarily by broadly syndicated senior secured loans and senior secured bonds.

Intermediate Capital Managers, a London-based investment management firm, priced one new CLO offering in 2018.

Jefferies prices CLO

Jefferies Finance priced $259.3 million of notes at par in the JFIN Revolver CLO 2019 Ltd./JFIN Revolver CLO 2019 LLC transaction, according to market sources.

The CLO sold $187.5 million of class A floating-rate notes at Libor plus 150 bps at the top of the three-tranche deal.

Jefferies LLC was the placement agent.

The notes are secured primarily by revolver and delayed-drawdown loans.

Jefferies Finance is a New York City-based commercial finance firm co-owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co.

Ellington brings 10 tranches

Ellington CLO Management closed Friday on a $478.49 million 10-part CLO offering, according to market sources.

In the senior secured tranches, Ellington CLO IV, Ltd./Ellington CLO IV LLC priced $237.5 million of class A floating-rate notes at Libor plus 184 bps and $45.13 million of class B senior secured floating-rate notes at Libor plus 250 bps.

Barclays was the placement agent.

The notes are due April 15, 2029.

The issue is collateralized mainly by broadly syndicated senior secured corporate loans.

Ellington CLO Management, an affiliate of Old Greenwich, Conn.-based Ellington Management Group, LLC, has priced four CLOs since it was formed in 2017.

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