Alcentra is the third manager in January to seek out a refinancing for one of its European collateralized loan obligation deals, according to a presale report from Standard & Poor’s.

Alcentra’s €391 million Jubilee CLO 2013-X is being structured with the issuance of three senior-tranche replacement notes and five deferrable subordinate classes of notes in the transaction based in The Netherlands.

It follows other Euro-denominated refis to arrive in the market this year, including 3i Debt Management’s €290 million Harvest CLO VIII and the Carlyle Global Market Strategies Euro CLO 2014-2 (€391 million).

Jubilee 2013-X will remain tied to a minimum 90% collateral in senior secured loans and bonds, and no more than 10% set aside for unsecured, mezzanine and second-lien loans or high-yield bonds.

Because there are no Volcker Rule-compliant structural options for replacement or non-voting notes in the deal, the Jubilee portfolio will not meet U.S. regulatory structured-finance standards that constrain buy-in by stateside institutional investors because of the Dodd-Frank regulation against the inclusion of HY bonds in CLOs.

The AAA-tranche will have a single Class A-R tranche of notes totaling €231.2 million, with a coupon of Euribor plus 96 basis points. European spreads are tighter than U.S. deals due to the negative interest rate environment in Europe. One-month Euribor rates were minus -0.372% at the close of trading on Monday.

The ‘AA’-rated Class B-1R notes total €42.4 million and the similarly rated Class B-2R notes issue is sized at €7.3 million.

Jubilee will carry a 40.36% subordination level for the ‘AAA’ notes, including 2.13% excess spread over Euribor. The total leverage in the deal is 6.62x, according to S&P.

The deal includes identified collateral of €338.9 million.

Alcentra, an indirect subsidiary of BNY Alcentra Group Holdings, has set a closing date of March 2 with arranger JPMorgan.

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