CVC Credit Partners is preparing a $490 million collateralized loan obligation, according to rating agency reports.
Citigroup Global Markets is the arranger.
Nearly half of the collateral, or 45%, will be purchased from another CLO, Apidos CLO VIII, that is also managed by CVC, according to Standard & Poor's presale report. That deal was completed for $352.33 million in October 2011, when CLO spreads were much wider than they are today, making refinancing attractive.
The $304 million senior class of Apidos CLO XV, which is rated ‘AAA’ by S&P and ‘Aaa’ by Moody’s Investors Service, was marketed at an interest rate of three-month Libor plus 135 basis points, in line with recent deals, but narrower than levels seen last year or in late 2011.
Moody’s did not rate the remainder of CLO XV, which consists of eight classes of floating and fixed-rate tranches.
The securities are non-callable until October 2015 and the manager has the ability to reinvest until October 2017.
CVC manages a total of $8.4 billion in 16 CLOs and in other structured credit products.
As of Oct. 15, 2013, the issuer had identified approximately 69.14% of the portfolio's collateral