Avoca Capital plans €310.75 million six-tranche European CLO offering

By Cristal Cody

Tupelo, Miss., Nov. 4 - Avoca Capital Holdings is expected to price €310.75 million of notes due Jan. 15, 2026 during the week in a long-expected European collateralized loan obligation transaction, according to informed sources on Monday.

The Avoca Capital CLO X Ltd. deal includes €166 million of class A floating-rate notes (/AAA/) talked to price at Euribor plus 140 basis points as well as €47.5 million of class B floating-rate notes (/BB/); €14.75 million of class C floating-rate notes (/A/); €20 million of class D floating-rate notes (/BBB/); €19 million of class E floating-rate notes (/BB/) and €43.5 million of subordinated notes in the equity tranche.

The cash flow CLO has a non-call period that ends Jan. 15, 2016 and a reinvestment period that ends Jan. 15, 2018.

Credit Suisse Securities (Europe) Ltd. is the placement agent.

Avoca Capital will manage the CLO, which is backed by a portfolio of euro-denominated broadly syndicated senior secured corporate loans and bonds.

The Dublin-based European credit investment manager last priced a European CLO when it brought the €300 million Avoca CLO IX Ltd. deal in 2008.

KKR & Co. LP announced in October that it will acquire Avoca Capital in a transaction expected to close in the first quarter of 2014.

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