Relatively new to the CLO scene, ICG Debt Advisors is preparing its second collateralized loan obligation, according to a presale report published by Moody’s Investors Service.

The $400 million deal, ICG US CLO 2014-2, will be backed by a portfolio of broadly syndicated corporate loans.  At least 90% of the portfolio must be made up of first-lien senior secured loans.  Approximately 80% of the pool is expected to be ramped at closing.

Of the eight tranches, Moody’s assigned preliminary ‘Aaa’ ratings to the $247 million class A-1 notes.  They will be marketed at three-month Libor plus 145 basis points, benefiting from an effective subordination of 38.3%, and are expected to mature in October 2026.

The deal has a standard four-year reinvestment period and two-year non-call period.

Morgan Stanley & Co. is the underwriter.

ICG Debt Advisor’s first ever CLO, $639.2 million ICG US CLO 2014-1, was issued in March.  Standard & Poor’s rated the $212.25 million notes ‘AAA.’

ICG Debt Advisors, founded in 2013 is an indirect subsidiary of Intermediate Capital Group, which had approximately $17.9 billion in assets under management as of March 2014.


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