ICG has priced its first European CLO of 2014, raising €435 million.
The CLO, St Pauls IV, is among the largest to be issued this year, the firm said. It follows ICG's first US-focused CLO, which raised $371 million when it closed on 4 March.
The firm increased the size of its last European CLO, St Pauls III, in November last year from €400 million to €550 million in response to investor demand.
Deutsche Bank acted as bookrunner and placement agent for the new deal. The fund is expected to close later this month.
The fund will be composed of senior secured loans will be managed by ICG's credit fund management team, led by Dagmar Kent Kershaw. Jeff Boswell will be lead portfolio manager. The CFM team oversees 18 credit funds specialising in senior loans, high yield bonds and structured credit, with a total of €5.3 billion of third party funds under management as of 31 December 2013, ICG said.
Commenting in a statement from the firm announcing the new CLO, Kent Kershaw said: “We have seen strong investor demand for our latest transaction, which allowed us to issue the debt tranches at the tightest spread levels of the year thus far. St Paul’s IV is ICG’s sixth issue since the financial crisis and we will continue to fully participate in the global CLO landscape.”
The CLO is composed as follows: a class A-1 tranche of €248 million (rated AAA and priced at Euribor +140 bps); a €56 million class A-2 tranche (AA at E+180bps); a €24 million class B tranche (A at E+260bps); a €21 million class C tranche (BBB at E+340 bps); a €29 million class D tranche (BB at E+480 bps); a €14 million class E tranche (B at E+600 bps); and €43 million of equity.