At a glance
- Morgan Stanley was on the deal, and Alternative Credit Investor reported the close on Aug.
- The roll rate stands out.
- CIC Private Debt is a direct lender first.
CIC Private Debt has closed the reset of Victory Street CLO I at roughly €307.5m. Morgan Stanley was on the deal, and Alternative Credit Investor reported the close on Aug. 18.
The roll rate stands out. Nearly 90% of the existing investor base rolled into the reset, and some upsized. Steve Dunn, head of CIC Private Debt in London, said the pricing put the deal 'in the tier one bracket.'
CIC Private Debt is a direct lender first. Founded in 2003, it manages €4bn for institutional and private investors and has made more than 600 investments in direct financing for European SMEs and mid-market companies. Its CLO program packages that lending into rated term paper. A reset re-underwrites the same collateral at a new spread, and the liability side chose to stay.
The third CLO
Dunn confirmed the firm aims to price Victory Street CLO III later this year. The reset settles one question: do existing holders still believe in the CLO I collateral? CLO III raises another: will those same holders write checks for fresh paper while European resets crowd the calendar? ACI's related coverage includes RBC BlueBay's €400m European CLO reset. Bridgepoint's €307m reset of its debut CLO appears on the same list. The roll rate says the base is there; the third deal will test the new-issue market.
Reported by the Direct Lending desk from Alternative Credit Investor. Published . Corrections