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.