Latest CVC CLO priced at €415.6m

The CLO, largely comprised of senior-secured loans, attracted demand from 33 investors.

CVC Credit Partners announced its latest CLO—the CVC Cordatus Loan Fund VIII – has been priced by Goldman Sachs.

The new fund is priced at €415.6 million, the firm announced. It received attention from 33 investors, including five investors new to CVC. The first payment date for the CLO is in October this year.

According to a factsheet from Moody’s, the CLO will have a term of 13 years. The vast majority of its loans are senior secured floating-rate loans due in 2030. The CLO, as a managed cash-flow CLO, has to have at least 92.5 percent of its portfolio invested in senior-secured fixed- or floating-rate debt, according to Moody’s.

The CLO will have a four-year reinvestment period, according to the factsheet. In addition to its rated loans, CVC also plans to issue €45.6 million of subordinate notes which are unrated.

CVC’s CLO pricing comes on the heels of a number of firms also bringing similar funds to market. Wellfleet Credit Partners, Carlyle Group and GSO Capital Partners all ended last year by pursuing CLO issuance. 

Despite this issuance at the tail-end of last year, Jonathan Bowers, partner at CVC, told PDI issuance had slowed down in 2017. This just the second such CLO issuance, he noted. 

Bowers also added 51 percent of the equity in the CLO is owned by another CVC fund which had its first close in December. It's the first time the firm has had such an arrangement, Bower added. 

CVC Credit Partners is a subsidiary of private equity shop CVC Capital Partners. The firm manages approximately $16.1 billion in assets. The credit subsidiary manages 23 CLOs, seven of which are in Europe.

A spokeswoman from CVC did not return calls seeking further comment by press time.