Euro market brings Invesco Euro CLO III and Alhambra; refinancings for BNPP, Carlyle

Chicago, Oct. 31 – The collateralized loan obligation market was quiet in the United States on the last day of October, but the Euro market brought two new CLOs and two redemptions via refinancing.

The larger deal came from Invesco Euro CLO III DAC with Invesco European RR LP listed as issuer of €409.1 million of new notes in seven classes plus an additional subordinated class.

The less typical issue was from Be-Spoke Capital (London) Ltd. with Alhambra SME Funding 2019-1 DAC as issuer with a €280.5 million CLO portfolio collateralized by middle-market alternative funding loans.

The refinancings came from BNPP and Carlyle.

BNP Paribas Asset Management finished its €215.25 million refinancing of its class A notes, downsized from an expected larger reprint.

And, Carlyle also altered course and only refinanced one class of A-1-R notes for €236 million where it had been moving in the direction of refinancing additional classes of notes.

Invesco readies CLO

Invesco is in presale mode with a new portfolio of six classes of floating-rate notes, one class of fixed-rate notes and a subordinated note class.

The weighted average life of the portfolio is 8.5 years, according to Fitch Ratings.

Covenant-lite loans are permitted for up to 30% of the portfolio, and a maximum of 7.5% of the assets can be rated CCC or lower by Fitch.

The minimum weighted average spread is 3.7%.

The weighted average rating factor (WARF) on the portfolio is 31.1, according to Fitch.

Alhambra brings MM CLO

Alhambra readied a new transaction for €280.5 million, a tweak on the typical CLO as it is backed by loans that have been issued to Spanish enterprises and middle-market corporations, loans which were originated by Be-Spoke Capital (Ireland) Ltd.

The originator of the loans is an alternative funding company which specializes in covenant-lite loans with a 5.5-year tenor.

According to DBRS Morningstar, as of Oct. 17, “the transaction portfolio consisted of 52 senior unsecured loans [totaling] EUR 274.98 million, which are extended to 48 companies based in Spain.”

This is Be-Spoke’s first cash-flow securitization.

The weighted average spread is 6.9% with a weighted average life of 3.5 years.

The two largest industries represented in the portfolio are surface transport and building and development.

BNPP, Carlyle: one class each

In transactions that were expected to be larger, both BNPP and Carlyle each refinanced one class of notes at the top of the stack.

BNPP AM Euro CLO 2017 redeemed and reissued €215.25 million of class A senior secured floating-rate notes.

Four other classes of notes were expected as part of the refinancing.

With the new notes, BNPP has increased the weighted average life of the portfolio by 15 months to 7.12 years, according to Moody’s Investors Service.

Carlyle whittled down what was planned to be a full-portfolio redemption to its class A-2-R floating-rate notes, according to previous reporting by Prospect News.

In the Carlyle CLO, the new notes “extended the weighted average life (WAL) test by 15 months to July 15, 2026,” according to Moody’s.

The portfolio still has a remaining 1.5 years on its reinvestment period.

© 2015 Prospect News.
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