GSO/Blackstone prints $617.5 million CLO; secondary spreads improve modestly

By Cristal Cody

Tupelo, Miss., July 28 – GSO/Blackstone Debt Funds Management LLC returned to the CLO primary market to bring its fourth new U.S. deal of the year.

The CLO manager priced a $617.5 million CLO.

Year to date, U.S. CLO issuance totals more than $73 billion, according to data compiled by Prospect News.

“The U.S. CLO primary market saw a pickup in issuance in June with 23 deals pricing for a total of $11.4 billion in issuance,” according to a Wells Fargo Securities, LLC report from Dave Preston, senior analyst, and Mackenzie Miller, associate analyst. “Activity has tapered off in July, with just 11 deals ($6.3 billion) pricing in the first three weeks of the month.”

In the secondary market, spreads have seen a “slight bias” toward tightening in the past week after widening in June, the analysts said.

“BSL 3.0 BBB and BB spreads are now flat to 10 bps wider than a month ago but have flattened or tightened slightly over the past week,” the Wells Fargo note said. “With the exception of the AAA tranche, spreads are 5-15 points tighter than at this point in 2014.”

GSO/Blackstone Debt Funds Management sold $617.5 million of notes due July 20, 2026 in the Cumberland Park CLO Ltd./Cumberland Park CLO LLC transaction, according to a market source.

Cumberland Park CLO priced $362 million of class A senior secured floating-rate notes at Libor plus 141 bps at the top of the seven-tranche deal.

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