3i prices €413m Harvest XIV CLO

The new vehicle is the firm’s third European CLO of the year and will invest in European leveraged finance loans.

3i Debt Management has closed Harvest CLO XIV on €413.9 million, the London-based alternatives firm announced. 

The transaction is 3i’s third European CLO of the year and its fifth including US vehicles. 

“2015 is one of our best years in terms of total AUM raised with circa $2.7 billion raised through these CLOs and the launch of the 3i Global Floating Rate Income Fund. The continuing good level of AUM growth is a reflection of the quality of our global platform,” said the group’s private debt chief executive and managing partner, Jeremy Ghose.

Harvest XIV will principally focus on investing in senior secured loans backing private equity buyouts in Europe. The vehicle is set to mature in November 2029. It is structured with a four-year investment window and a two-year non-call period. 

The capital structure of Harvest XIV is comprised of: 

 

  • €139 million class A-1A notes rated AAA/Aaa (S&P and Moody’s), priced at Euribor plus 140bps;
  • €100 million class A-1B notes rated AAA/Aaa, priced at Euribor plus 145bps;
  • €5 million class A-2 notes rated AAA/Aaa, priced at 1.762 percent;
  • €32 million class B-1 notes rated AA+/Aa2, priced at Euribor plus 2.15 percent;
  • €10 million class B-2 notes rated AA+/Aa2, priced at 2.774 percent; 
  • €23 million class C notes rated A+/2A, priced at Euribor plus 300bps;
  • €25 million class D notes rated BBB/Baa2, priced at Euribor plus 390bps;
  • €24.5 million class E notes rated BB/Ba2, priced at 5.5 percent over Euribor;
  • €12 million class F notes rated B-/B2, priced at 6.3 percent over Euribor;
  • €43.4 million in unrated subordinated notes.

3i Debt Management had total AUM of $11.3 billion, as of 30 September. It recently launched a global floating rate income fund, an open-ended vehicle which will invest across European and US senior secured floating rate corporate credit.

*The headline of this article was updated on 19 November to reflect that the vehicle has closed. Pricing took place several weeks before the CLO formally closed.