Capital One prices $428M Brightwood middle-market CLO in rare arranger foray

Capital One Securities made a rare appearance in the CLO market this week in arranging the pricing of a middle-market deal sponsored by Brightwood SPV Advisors LLC, an affiliate of Brightwood Capital Advisors.

Terms from the Oct. 20 transaction include a triple-A tranche coupon of L+165 for the $427.85 million Brightwood Capital Fund 2021-2 CLO, according to market sources.

Deal details are as follows:

The deal, Brightwood's first for 2021, features abbreviated terms for actively managing the deal, with a non-call period and a reinvestment period each ending Nov. 15, 2022. The final maturity is Nov. 15, 2030.

Capital One served as sole structuring and placement agent on the deal, which is slated to close Nov. 4.

Capital One was a co-structuring agent in 2020 for two CLOs: the $263.5 million ABPCI Direct Lending Funds CLO VIII led by Barclays for AB Private Credit Investors and the $300.7 million PennantPark CLO II led by GreensLedge Capital Markets for PennantPark Investment Advisers.