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Voya prices debut €356.3 million European CLO

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Voya Alternative Asset Management priced its first European collateralized loan obligation Friday, in a deal placed through Credit Suisse.

Voya Euro CLO 1 is a €356.3 million (US$442 million) securitization of most Western European speculative-grade corporate loans that will be about 75% ramped by its May 18 closing date, according to a a press release issued by Moody’s Investors Service's London office press.

Both Moody’s and S&P Global Ratings announced preliminary ratings for the deal Tuesday.

The €203 million triple-A rated tranche pays at 75 basis points over the European interbank Euribor rate, which is currently a negative rate (one-month Euribor is -0.37%; the three-month rate is -0.34%.).

Six other tranches of notes were also issued with ratings ranging from double A to double B minus; including a €15 million tranche of in double-A rated fixed-rate notes. There is also a €31.5 million tranche of unrated subordinated notes.

The deal will have a four-year reinvestment period.

Voya, a unit of the $232 billion-asset Voya Investment Management, is one of the largest U.S. CLO issuers with 19 outstanding post-crisis deals under management totaling $10.6 billion, according to S&P Global Ratings.

A pending $600 million Voya CLO 2018-1 U.S. issue is slated to close in April.

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CLOs CDOs Voya Moody's S&P Fitch Europe