GoldenTree sells €404.75 million CLO; U.S. market active; Octagon reprices; euro spreads ease

By Cristal Cody

Tupelo, Miss., Feb. 26 – New CLO deals were reported on Monday in both the U.S. and European deal markets.

GoldenTree Asset Management LP priced a new €404.75 million CLO.

Euro-denominated CLO spreads have softened in February, according to a BofA Merrill Lynch note released on Monday.

“Spreads continued to widen for European CLOs, though with few sellers appearing on the secondary market, the primary market helped provide a better indication of current spread levels,” BofA Merrill Lynch analysts said in the note. “After widening through most of February, lower mezzanine tranches appear to have erased most of their January gains, with spreads for BB and single B tranches back at around 500 [basis points] and 700 bps respectively.”

In the U.S. primary market, GC Investment Management LLC priced $904 million of notes in the new Golub Capital Partners CLO 36(M) Ltd./Golub Capital Partners CLO 36(M) LLC middle-market transaction, a source said. Final pricing details were not immediately available. Wells Fargo Securities LLC was the placement agent.

In other deal action, Octagon Credit Investors, LLC refinanced $598 million of notes from a 2015 vintage CLO.

GoldenTree prices €404.75 million

GoldenTree Asset Management priced €404.75 million of notes due 2030 in a new CLO offering, according to a market source.

GoldenTree Loan Management EUR CLO 1 DAC priced €2 million of class X senior secured floating-rate notes at Euribor plus 30 basis points and €162 million of class A-1A senior secured floating-rate notes at Euribor plus 73 bps in the senior tranches.

Citigroup Global Markets Ltd. was the placement agent.

GoldenTree Asset Management is the CLO manager.

The private investment firm is based in New York City.

Octagon refinances CLO

Octagon Credit Investors priced $598 million of notes due Oct. 20, 2026 in a partial refinancing of the Octagon Investment Partners 25, Ltd./Octagon Investment Partners 25, LLC transaction, according to a notice of executed supplemental indenture No. 1 and supplemental indenture No. 2 and notice of contribution on Friday.

The CLO sold $496 million of class A-R senior secured floating-rate notes at Libor plus 80 bps at the top of the capital stack.

Citigroup Global Markets Inc. was the refinancing placement agent.

The CLO has a reinvestment period that ends on the payment date in April 2020.

The original $820 million transaction was issued on Oct. 29, 2015.

Proceeds will be used to redeem the original class A, B and E-1 notes.

Year to date, Octagon has priced one new CLO and refinanced two vintage CLOs.

In 2017, Octagon Credit Investors priced four new CLOs and refinanced notes from seven vintage CLOs.

The New York-based credit investment firm is a subsidiary of Conning & Co.

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