France's Tikehau Capital to issue €400M CLO, its fourth
French alternative-asset manager Tikehau Capital Europe Ltd. (EuroNext: TKO.FP) is launching its fourth euro-denominated collateralized loan obligation, according to Fitch Ratings.
Tikehau CLO IV B.V. will be backed by €400 million (US$466.5 million) in mostly European leveraged loans and high-yield bonds (with an allowance for up to 25% of non-euro-denominated assets), according to a release published by Fitch.
The capital stack will consist of 11 tranches of notes, including two tranches of Class A notes one tranche of Class X notes that receive only interest; all three senior tranches are rated AAA by Fitch. There will also be three Class B tranches (rated AA), a pair of Class C tranches (A), and then single tranche each for Class D (BBB), E (BB) and F (B-). Fitch is not rating the subordinate notes being issued with the deal.
The release did not state tranche sizes or expected spreads on the note classes, but often split classes involve varied tenors or a mix of floating- and fixed-rate bonds.
Last November, Tikenau CLO III had a narrower band of six class-note tranches in a €420 million deal.
The CLO will have a 4.5-year reinvestment period and an 8.5-year weighted average life.
The company, based in Paris, reported €14.2 billion in assets under management as of March 31, which included €6.1 billion in private corporate debt (the remaining assets under management are divided between private equity, real estate and liquid strategies holdings).
The company operates both direct-lending and corporate-lending funds, most recently the Tikehau NOVO 2018 representing a new vintage of its NOVO 2 fund introduced in 2013.
The company this spring was planning on bringing to market a new senior-loan fund to replace its Tikehau Senior Loan II fund that had €600,000 AUM.