- The leveraged investment group unit of CSFB, CSFB Alternative Capital, brought its inaugural European CLO, Cadogan Square CLO BV, through CSFB. The transaction comprised six tranches priced at spread levels roughly in line with other European CLO issues, according to bankers. The Triple A rated €305.7m As with a WAL of 8.2 years were priced at plus 26bp; the Double A rated €33.2m Bs with a WAL of 10.1 years at plus 40bp; the €31.2m Single A rated Cs at plus 65bp; the €27.4m Triple B rated Ds at plus 170bp; and the €10.3m Double B rated Es at plus 475bp. An unrated portion of €42.2m was pre-placed. Moody’s pointed to the investment management experience of the leveraged investment group and structural enhancements as evidence of strength in the deal, but said its dynamic feature might result in trading losses.
- Italian telecommunications company Wind printed its B3/B– two-part, 10-year, non-call five bond, raising €1.25bn to help finance the buyout of the company by Weather Investments, an investment vehicle led by Egyptian entrepreneur Naguib Sawiris. The bond had been expected to be a test for the market following the icy reception given to the €6.85bn sale of senior bank debt before the summer.
Just before the roadshows started, the company announced a 16.2% rise in Ebitda and a profit of €2m thanks to cost-cutting and a new chief executive. Hence, the €825m tranche was sold at par to yield 9.75%, the tight end of 9.75%–10% guidance. The slightly smaller US$500m portion came outside the euros to yield 10.75%, the wide end of the 10.5%–10.75% price talk, reflecting the 85bp differential in yield in Single B rated pari passu euro and dollar bonds in the secondary market.
- HVB has been mandated to arrange a €300m add-on to German fashion retailer CBR’s existing €690m facility, arranged in January of this year by HVB and RBS. The move effectively recapitalises the business by allowing pre-payment of the mezzanine debt. The new debt is split on a pro-rata basis between the B and C tranches, increasing both by €150m. At a bank meeting on December 1, sponsors Apax and Cinven will seek a waiver from lenders to repay the €145m mezzanine portion of the original structure, for which lenders are offered a 25bp waiver fee. The add-on also allows the sponsors to reap an early dividend.
- ONO is set to close its €3.1bn senior debt package through MLAs and bookrunners ABN AMRO, Calyon, Fortis Bank and BSCH. The facility is well oversubscribed. The loan backs ONO’s €2.25bn acquisition of Auna Telecomunicaciones, the cable and fixed-line arm of Auna Group, as well as refinancing debt. In addition to the loan, the acquisition will be financed through equity from Providence, Quadrangle, JPMorgan and Thomas H Lee.