GC Investment prices $410.5 million Golub CLO; CIFC offers $724.49 million CLO; AAs widen

By Cristal Cody

Tupelo, Miss., April 7 - CLO issuance continues to ramp up following a strong March pipeline with more than $3 billion of deals already priced in the first week of April, according to market sources.

Steady issuance is expected over the week after GC Investment Management LLC's $410.5 million Golub Capital Partners CLO 19 (B) Ltd./Golub Capital Partners CLO 19 (B) LLC offering on Monday, according to an informed source.

The Golub CLO priced the AAA tranche at Libor plus 150 basis points.

Coming up in the primary market, CIFC Asset Management LLC plans to offer a $724.49 million CLO transaction, according to a market source.

About $16 billion of CLO deals are in the pipeline, market sources said.

Total global arbitrage CLO new issue volume amounts to about $28.8 billion year to date, Morgan Stanley & Co. LLC analysts Vishwanath Tirupattur and Mia Qian said in a note on Monday.

"The new issue market has shrugged off the slow start at the beginning of the year and the near-term outlook seems robust," the analysts said. "Across the U.S. new issue CLO capital structure, CLO AAA spreads remain sticky in the 150-160 bps context, and CLO AA spreads have also retracted back to the 210-225 bps context in 1Q14 from their tight level of 180 [bps] context in 4Q13."

GC Investment prices

GC Investment Management priced $410.5 million of notes due 2026 in the CLO deal via Citigroup Global Markets Inc., according to an informed source.

The Golub Capital Partners CLO 19 (B) vehicle sold $131.5 million of class A-1A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 bps, $124 million of class A-1B senior secured floating-rate notes (Aaa/AAA/) at Libor plus 158 bps and $49 million of class A-2 senior secured floating-rate notes (Aa2) at Libor plus 200 bps.

The CLO also priced $18.75 million of class B secured deferrable floating-rate notes (A2) at Libor plus 275 bps; $22.8 million of class C secured deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $22 million of class D secured deferrable floating-rate notes (Ba3) at Libor plus 475 bps and $4.8 million of class E secured deferrable floating-rate notes (B2) at Libor plus 550 bps.

The deal included $37.65 million of subordinated notes in the equity tranche.

GC Investment Management will manage the CLO.

The portfolio is backed primarily by first-lien senior secured loans.

Proceeds will be used to purchase a $400 million portfolio of primarily senior secured leveraged loans.

GC Investment Management priced the $453.12 million Golub Capital Partners CLO 18 (M) Ltd./Golub Capital Partners CLO 18 (M) LLC deal on Feb. 27. The affiliate of New York-based middle market lender Golub Capital brought three CLO transactions in 2013.

CIFC preps CLO

CIFC Asset Management plans to offer $724.49 million of notes due May 24, 2026 in the CIFC Funding 2014-II Ltd./CIFC Funding 2014- II LLC transaction, according to a market source.

The deal includes $441 million of class A-1L senior secured floating-rate notes (Aaa/AAA/); $62.8 million of class A-2L senior secured floating-rate notes (Aa2); $10 million of class A-2F senior secured fixed-rate notes (Aa2); $60.2 million of class A-3L senior secured deferrable floating-rate notes (A2); $35 million of class B-1L senior secured deferrable floating-rate notes (Baa3); $36.4 million of class B-2L senior secured deferrable floating-rate notes (Ba3) and $79.09 million of subordinated notes.

RBS Securities Inc. will arrange the offering.

CIFC Asset Management will manage the CLO, which is backed primarily by broadly syndicated senior secured corporate loans.

CIFC Asset Management brought the $623 million CIFC Funding 2014 Ltd./CIFC Funding 2014 LLC deal on Feb. 6. The firm was in the market in 2013 with four CLO transactions.

The New York City-based investment adviser is a subsidiary of CIFC Corp.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.