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Czech Asset Management secures final close of global direct lending fund at $1.5B

czechCzech Asset Management has announced the final close for its second direct lending fund (SJC II) with total commitments of $1.5 billion, exceeding its $1 billion target and hitting its $1.5 billion hard-cap.

SJC II is the second direct lending fund that exceeds $1 billion raised by CAM within the past 34 months.

SJC II’s direct lending strategy focuses on providing privately negotiated, floating-rate senior secured loans to U.S. and European middle-market companies that generate annual revenue of roughly $75-500 million, and annual EBITDA of roughly $7.5-50 million.

To date, SJC II has invested approximately $300 million.

CAM’s global investor base is comprised of public and private pension funds, endowments, foundations, Taft-Hartley plans, family offices, and high-net worth individuals.

Old Greenwich, CT-based CAM is a direct lending firm engaged in the business of originating and investing in asset-based and cash-flow first- and second-lien secured floating rate loans for middle-market borrowers located throughout North America and Europe. CAM now has roughly $3 billion of committed capital under management, and $1.2 billion of co-investment capacity. – Sarah Husband

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CVC Credit Partners prices $625M CLO via Credit Suisse

Credit Suisse yesterday priced a $625 million CLO for CVC Credit Partners, according to sources.

The deal is the asset manager’s fourth to price this year and is structured as follows:

The deal has a final maturity date of Jan. 19, 2025.

Including the deals from CVC and Babson today, CLO issuance in the year to date rises to $70.89 billion across 147 deals. Month-to-date issuance stands at $5.92 billion from 12 deals. – Sarah Husband

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European leveraged loan prices hit 6.5-year high in trading market

The average bid of LCD’s European loan flow-name composite gained 10 bps during the week ended Nov. 21, to 100.62% of par. The gain is the seventh in as many weeks, during which time the average bid has added 52 bps. The average bid is currently at a 6.5-year high, and is 328 bps above the closing level of 2012.

LCD’s broad secondary composite, which reflects a wider universe of deals, gained 49 bps during the week ended Nov. 21, to 90.56. The reading is now at a 69-month high, dating back to February 2008. The average bid is now 646 bps above 2012’s closing level.

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Tribune $3.8B leveraged loan backing Local TV buy enters trading above OID

tribune-company_200x200

The $3.8 billion TLB for Tribune Co. broke for trading late this afternoon at 100/100.25, from issuance at 99.75, according to sources. The seven-year loan is priced at L+300, with a 1% LIBOR floor, and includes six months of 101 soft call protection. J.P. Morgan, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, and Credit Suisse arranged the loan, which backs Tribune Co.’s planned acquisition of Local TV from Oak Hill Capital Partners. The issuer is also putting in place a $300 million, five-year revolver. As reported, the leads trimmed pricing on the covenant-lite loan from original talk of L+350, with a 1% floor and a 99 offer price. Tribune in July agreed to purchase Local TV’s 19 television stations for $2.725 billion in cash. The company will also refinance its existing debt alongside the purchase and is spinning off its publishing assets into an independent company, ultimately leaving a pure-play broadcaster.

Terms:

Borrower Tribune Co.
Issue $3.8 billion TLB
UoP Finance Local TV purchase, refinance debt
Spread L+300
LIBOR floor 1.00%
Price 99.75
Tenor seven years
Call protection six months of 101 soft call
YTM 4.11%
Corporate ratings BB-/Ba3
Facility ratings BB+/Ba3
S&P recovery rating 1
Financial covenants none
Bookrunners JPM, BAML, Citi, DB, CS
Admin agent JPM
Px talk L+350/1%/99
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Delta Air Lines $1.34B leveraged loan repricing wraps in line with talk, tops par on entering secondary

Delta Air LinesAccounts today received allocations of the roughly $1.34 billion repriced TLB for Delta Air Lines, which broke for trading at 100.25/100.75, from issuance at par, according to sources. The loan matures in April 2017 and is priced at L+275, with a 0.75% LIBOR floor, and six months of 101 soft call protection. In addition, the loan includes a step-down to L+250 if corporate ratings are upgraded to BB- and Ba3, from B+/B1 currently. J.P. Morgan arranged the transaction, which cleared in line with talk. Lenders to the existing TLB (L+325, 1% floor) are poised to be repaid at par.

Terms:

Borrower Delta Air Lines
Issue $1.34 billion TLB
UoP Repricing
Spread L+275
LIBOR floor 0.75%
Price 100
Maturity Apr-17
Call protection six months 101 soft call
YTM 3.55%
Corporate ratings B+/B1
Facility ratings BB/Ba1
S&P recovery rating 1
Financial covenants yes
Bookrunners JPM
Admin agent JPM
Notes Includes step-down to L+250 if corporate ratings upgraded to BB-/Ba3
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Slim pickings? Upcoming leveraged loan deal flow at smallest point since December

leveraged loan forward calendar

Cash-rich institutional investors looking to partake in the U.S. leveraged loan market likely will have no easier time booking higher-yielding assets during the remainder of 2013 than they have for the past few months.

The forward calendar of U.S. institutional loans – credits that have been announced but not yet brought to the syndications market – this week hit $25.63 billion, its lowest point since December 2012, according to S&P Capital IQ/LCD. Of that amount, roughly $16 billion backs M&A while the remainder largely backs refinancings.

Of course, U.S. leveraged loan investors have been sitting on piles of cash recently, seeing an astounding 74 straight weeks of net cash inflows, according to Lipper. For 2013 there has been $56 billion of net inflows into U.S. loan funds, says Lipper.