CVC becomes first large CLO manager to price short two-year reset in Europe

By Hugh Minch

CVC Credit Partners priced Europe’s first CLO reset of the year yesterday, cutting the funding costs for 2014’s CVC Cordatus Loan Fund IV

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TAGS: Europe Refinancing CLO Morgan Stanley CVC Pricing Primary market

View details on CLO-i: CVC Cordatus Loan Fund IV

Comment by: Hugh Minch. Posted 5 years ago [2019-02-15 16:16:04]

This article has been updated to mention that GSO Capital Partners priced a short reset of Richmond Park CLO last year. A previous version of this article claimed that CVC was first to price a short-dated reset in Europe. Creditflux apologises for the error.

Comment by: Anonymous. Posted 5 years ago [2019-02-15 14:30:39]

Got it - thanks for clarifying

Comment by: Anonymous. Posted 5 years ago [2019-02-15 14:26:53]

Hi Anonymous - typical reinvestment periods are 4.5 years in Europe so this one is 2.5 years shorter, rather than 3. So the maths is 11/2.5. Still an error on my part. I've updated the article to make that clear.

Comment by: Anonymous. Posted 5 years ago [2019-02-15 14:16:13]

The reinvestment period is 3 years shorter than a typical 5-year deal and pricing is 11bps tighter. Shouldn't this imply a roll-down of approx 3.7bps (11/3) for each year of reinvestment?