3i closes second European CLO, Harvest VIII
3i Group plc (“3i” or “3i Group”), an international investor, today confirms the closing of a collateralised loan obligation (“CLO”) fund, Harvest CLO VIII (“Harvest VIII”). Harvest VIII, a €425 million CLO.
An aggregate of €338 million of investment grade debt in four classes and, in addition, €87 million of non-investment grade mezzanine and subordinated notes were issued. The vehicle will have a final legal maturity of April 2026. Harvest VIII will principally focus on investing in European senior secured loans backing private equity buyouts in Europe.
Jeremy Ghose, Managing Partner and 3i Debt Management CEO said:
“Harvest VIII is our sixth CLO in the last sixteen months. We have seen significant momentum in demand, particularly in the first quarter of 2014, when we issued a new CLO in both the US and Europe. The ability to execute these deals in quick succession shows the strength of our debt management platform and the investor following in the market place.”
3i Debt Management has grown substantially since it was established in 2011. On a pro forma basis, the total assets under management ("AUM") of 3iDM were approx. £6.3 billion at 31 December 2013.
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For further information, contact:
3i
Kathryn van der Kroft
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com
Notes to editors:
Harvest VIII
The transaction has a 4-year investment period and a non-call period of 2 years. The capital structure is as follows:
| Class | (€MM) | (S&P/Fitch) | Coupon |
|---|---|---|---|
| A | 243.0 | AAA/AAA | E + 1.40% |
| B | 47.0 | AA/AA | E + 1.90% |
| C | 27.0 | A/A | E + 2.35% |
| D | 21.6 | BBB/BBB | E + 3.25% |
| E | 31.0 | BB/BB | E + 4.50% |
| F | 10.0 | B/B | E + 5.25% |
| SUB | 46.0 | Not rated |
About 3i Group
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas.
www.3i.com
About 3i Debt Management
3i Debt Management, which was founded through the acquisition of Mizuho Investment Management in February 2011, specialises in the management of third-party funds investing in corporate debt issued by medium and large European and US companies.