Carlyle Plans First Euro CLO Since ’08; U.S. Inflows Set RecordKrista Giovacco
Carlyle Group LP is planning to raise a 300 million-euro ($392 million) collateralized loan obligation, while U.S. inflows to floating-rate funds exceeded $1.5 billion this week, setting a record.
The world’s second-biggest private equity firm by assets is seeking its first European CLO since 2008 that will be arranged by Barclays Plc, according to three people with knowledge of the matter who asked not to be identified because the information is private. At least 90 percent of the fund will be backed by senior secured loans.
Investors poured more than $1.5 billion into U.S. loan funds this week, a weekly record, increasing assets under management by 23.5 percent, to $18 billion this year, according to Bank of America Corp.
Leveraged-loan prices gained 0.12 cents this week, to 98.45 cents on the dollar today, the highest since July 19, 2007, according to Standard & Poor’s LSTA U.S. Leveraged Loan 100 Index.
Amid the demand, Wilsonart International Holding LLC is seeking to increase a loan it obtained in October to $740 million from $725 million, according to a person with knowledge of the transaction. The company is looking to reduce the rate on the loan to 3 percentage points more than the London interbank offered rate with a 1 percent minimum on the lending benchmark, compared with 4.25 percentage points with a 1.25 percent floor originally, said the people, who asked not to be identified because the terms are private.
Cablevision Systems Corp. cut pricing on a loan after increasing the size yesterday, according to data compiled by Bloomberg. A $2.35 billion term portion will pay interest at 2.5 percentage points more than Libor, compared with 2.75 percentage points initially proposed on a $1.9 billion piece, the data show.
Dole Food Co., the world’s biggest producer of fresh fruit and vegetables, will pay interest at 3 percentage points to 3.25 percentage points more than Libor, with a 1 percent minimum on a $500 million term loan and $125 million delayed-draw piece it’s seeking to refinance debt, said two people with knowledge of the transaction. The debt may be sold at 99.5 cents on the dollar to par.
Bain Capital LLC’s Sankaty Advisors LLC is raising its first fund focused on CLOs, according to a person with knowledge of the plan. The Sankaty CLO Partners I fund raised about $160 million after the first round and the amount can be increased to as much as $300 million for the final close by the end of the year, said the person, who asked not to be identified because the deal is private. The fund seeks to deliver double-digit annual returns through investments in the equity and the junior portions of mostly U.S. CLOs, the person said.