CLO roundup: Pre-Thanksgiving flurry boosts quiet November

November, typically one of the busier months of the year for the primary leveraged loan/CLO market, has been unseasonably quiet, and with the U.S. taking time out to celebrate Thanksgiving this week, arrangers have been looking to price any CLOs they can before players begin to exit for the holiday.

As of Nov. 20 the U.S. had priced a total of $4.1 billion from eight CLOs this month, while Europe had notched up €1.28 billion from three deals.

Statistics in 2015 through Nov. 20 are as follows:

  • Global issuance is $103.26 billion.
  • U.S. issuance is $89.71 billion from 171 deals, versus $114 billion from 214 deals in the same period last year.
  • European issuance is €12.21 billion from 30 deals, versus €12.31 billion from 29 deals in the same period last year.


Story written by Sarah Husband and Andrew Park. You can follow the both on Twitter .



Citi names Basham as head of leverage finance and loans

Richard Basham has been appointed head of EMEA leverage finance and loans at Citi, expanding his role from being the head of the bank’s EMEA loans franchise.

Basham, who was promoted to sole head of Citi’s EMEA loan franchise last year following the move of Ahu Khullar to the firm’s corporate bank division, has been at the bank for 25 years. In his new position, he will be working more closely withAnthony Diamondakis, head of the EMEA alternative assets group.

Paul Simpkin is assuming the role of chairman of EMEA leverage finance, from head of European leverage finance. He will now focus more closely on the firm’s leading corporate clients. — Staff reports


First Data Launches Cross-Border Term Loans To Repay Existing Debt

An arranger group led by Credit Suisse and KKR Capital Markets this afternoon launched a cross-border add-on package toFirst Data’s U.S. dollar and euro term loans due 2022 in order to repay a portion of its roughly $1.4 billion term loan due 2017, sources said.

First Data plans fungible add-ons of $750 million and €200 million to the loans due July 2022. The loans are priced at L/E+375, with no floor. The new money is offered at 99-99.25, and First Data will refresh the loans’ 101 soft call premium for six months, sources said.

Commitments are due by 3 p.m. EST on Thursday, Nov. 5.

The 2022 dollar term loan was quoted at 99.75/100 pre-news. First Data’s term loan due March 2018 (L+350, no floor) is quoted today in a 99.25/99.5 context.

First Data’s term debt is governed by a secured-leverage test. Post-IPO, the issuer is now rated B+/B2, and the term debt is rated BB/B1, with a 1 recovery rating. First Data went public last month, raising $2.56 billion. KKR purchased First Data in 2007.

The existing dollar loan due 2022 includes tranches of $725 million and €250 million. That deal, put in place in June, was used to refinance a portion of the credit-card-processing firm’s 7.375% first-lien notes due 2019 and was arranged by Bank of America Merrill Lynch Citigroup, Deutsche Bank, Morgan Stanley, KKR, HSBC, Mizuho, PNC, and SunTrust Robinson Humphrey. Credit Suisse is administrative agent on First Data’s loans. — Chris Donnelly


European Leveraged Loan Volume Hits 4-Month High of €6.7B

european leveraged loan volume

European new-issue loan volume rose to a four-month high of €6.7 billion in October, finally getting close to the summer levels. Institutional issuance accounted for €4.7 billion – just shy of the €5 billion seen in each of June and July, and a welcome development for investors faced with IPO-related repayments from borrowers such as WorldPay and Intertrust.

October’s volume received a boost from the €1 billion TLB to fund the buyout of Verisure, the £500 million TLB from the cross-border M&A transaction for Concordia Healthcare, and a €500 million term loan to fund the cross-border recapitalization facilities for NumericableSFR. Staff Reports



ICG adds to middle market loan investment team with Rabel hire

Intermediate Capital Group (ICG) has hired Jeffrey Rabel to originate, process, and monitor middle market debt deals.

He joined as managing director, and started in September. He will be based in New York.

Rabel had been part of the financial sponsors group at Barclays in New York since 2006 in a similar role. There, he was responsible for origination across industries for a wide range of sponsors. He also worked at Credit Suisse, where he was part of the bank’s Global Industrial Group.

The hire is the latest as ICG builds out its syndicated loan business.

In August, ICG announced the hiring of Adam Goodman to its U.S. private debt investment team as a managing director. Goodman joined from MetLife, where he was head of mezzanine investments and a portfolio manager responsible for direct private debt, mezzanine, and credit fund investments.

Salvatore Gentile is head of ICG’s U.S. operations.

ICG’s U.S. investment team also includes Brian Spenner and Seth Katzenstein, who both joined the firm in 2013. Spenner worked mainly in origination and execution of private debt transactions in various roles at Blackstone, SAC Capital, BancAmerica Securities, and Nomura Securities. Katzenstein is portfolio manager for syndicated loan products, and joined from Black Diamond Capital Management.

Gentile and Spenner were founding members of Blackstone’s Corporate Debt Group. — Abby Latour

Follow Abby on Twitter @abbynyhk for middle-market deals, leveraged M&A, BDCs, distressed debt, private equity, and more.


3Q European Leveraged Loan Market Analysis on YouTube

LCD’s video analysis detailing 2015 third-quarter activity in the European leveraged loan market is now on YouTube.

There was widespread volatility in the global financial markets, of course, arising from a multitude of different sources – Greece early on in the quarter, then Chinese equities in the middle, plus a mish-mash of factors by the end, including the emissions scandal surrounding VW. European leveraged loans fared better than their counterparts in other asset classes, however.

Charts in the video:

– European leveraged loan returns 
– Returns: loans vs high yield 
– New-issue leveraged loan volume
– M&A activity
– Leveraged loan repayments
– Price-flex activity

The URL:

Click here to download PDF slides of the video via Slideshare.

URL for the slides:

While you’re on YouTube please subscribe to LCD’s YouTube Channel – that way you won’t miss any LCD videos. You can also subscribe by clicking on the link to the right of any LCD News email, or here:

If you’d like to embed any LCD video on a web page or in other digital media, it’s simple via the “embed” button on the YouTube page for the video. You can also embed the slides via Slideshare.


LCD’s High Yield Market Primer/Almanac Updated with 3Q Charts

LCD’s online High Yield Bond Market Primer has been updated to include third-quarter 2015 and historical volume and trend charts.

The Primer can be found at, LCD’s free website promoting the asset class. features select stories from LCD news, weekly trends, stats, and analysis, along with recent job postings.

We’ll update the U.S. Primer charts regularly, and add more as the market dictates (new this time around: an historical look at Fallen Angels, courtesy S&P).

Charts included with this release of the Primer:

  • US High Yield Issuance – Historical
  • 2015 High Yield Issuance, by Purpose
  • High Yield LBO Issuance
  • Fallen Angels – Historical
  • Cash Flows to High Yield Funds, ETFs
  • PIK Toggle Issuance (or lack thereof)
  • Yield to Maturity: Historical, Recent

LCD’s Loan Market Primer and High Yield Bond Market Primer are some of the most popular pieces LCD has published. Updated annually (print) and quarterly (online) to include emerging trends, they are widely used by originating banks, institutional investors, private equity shops, law firms and business schools worldwide.

Check them out, and please share them with anyone wanting an excellent round-up of or introduction to the leveraged finance market.


European High Yield Bond Funds Record €254M Outflow

J.P. Morgan’s weekly analysis of European high-yield funds shows a €254 million outflow for the week ended Oct. 7. The reading includes a €126 million net outflow from ETFs, and a €38 million net inflow for short duration funds. The reading for the week ended Sept. 30 is revised from a €323 million outflow to a €340 million outflow.

The provisional reading for September is a €696 million outflow, marking the fourth consecutive monthly outflow. August saw an outflow of €1.1 billion, the largest on record, with July and June having recorded €260 million and €702 million outflows, respectively. March’s €3.1 billion influx remains the largest monthly inflow on record. January and February both registered a €1.9 billion monthly inflow, while April’s inflow was €1.4 billion, and May’s inflow was €550 million.

Inflows for 2015 through September are €6.3 billion, versus full-year inflows of €4.15 billion and €8.94 billion in 2014 and 2013, respectively. Inflows for 2015 peaked at €9 billion through the end of May.

With secondary rallying last week, and cash balances building through coupons, a lack of primary, and some redemptions, outflows remain the most significant negative technical in the market. Still, with ETFs accounting for nearly 50% of the latest weekly outflow, versus an average 21% contribution since the start of June, there are hopes that managed accounts are seeing outflows slow. Moreover, there are signs primary issuance is re-awakening, with a £790 million two-part deal from Lowell currently marketing, and up to €700 million of secured notes expected to be launched soon from Verisure.

Retail cashflow for U.S. high-yield funds turned back into positive territory with a net inflow of $735 million in the week ended Oct. 7, according to Lipper. The inflow barely dents the $2.2 billion withdrawal the week before, but it’s the fourth inflow over the past five weeks for a net outflow of $977 million over that span. The net inflow masks an underlying dynamic that could suggest market-timing, hedging strategies, and fast-money investors in the asset class. The mutual fund segment was negative $675 million in the latest reading, but it was filled in and overblown by a whopping $1.4 billion infusion to exchange-traded funds. The full-year reading is now negative $4.3 billion, with just 7% of that ETF-related.

J.P. Morgan only calculates flows for funds that publish daily or weekly updates of their net asset value and total fund assets. As a result, J.P. Morgan’s weekly analysis looks at around 55 funds, with total assets under management of €38 billion. Its monthly analysis takes in a larger universe of 100 funds, with €52 billion of assets under management. For a full analysis, please see “Europe receives HY fund flow calculation.” –Luke Millar

Follow Luke on Twitter for leveraged finance news and insight.