Blackstone/GSO, Ares, Jefferies price ahead of holiday week; Sankaty preps $415.25 CLO

By Cristal Cody

Tupelo, Miss., June 27 – Blackstone/GSO Debt Funds Management Europe Ltd., Ares Management Ltd. and Jefferies Finance LLC priced CLO deals in the U.S. and European primary markets on Friday, according to informed sources.

Blacktone/GSO brought the €413.25 million Phoenix Park CLO Ltd. transaction. The CLO priced the AAA notes at Euribor plus 135 basis points.

Ares Management raised €325 million in the Ares European CLO VII Ltd. deal and priced the AAA-rated tranche at Euribor plus 135 bps.

In the U.S. market, Jefferies Finance sold a $562.5 million CLO. The firm placed the AAA-rated notes at Libor plus 150 bps.

“Everybody tried to get deals done this week,” an informed source said on Friday. “Next week, we’ll only have two to three days that the markets will be open. A lot of people will be out next week.”

The bond markets will close early on Thursday and will close on July 4 for the Independence Day holiday.

More than $59 billion of CLOs have priced year-to-date, a source said.

Looking ahead, Sankaty Advisors LLC plans to bring a $415.25 million CLO deal, according to a market source.

Blackstone/GSO prices €413.25 million

Blackstone/GSO Debt Funds Management Europe sold €413.25 million of notes due July 29, 2027 in the European CLO deal on Friday, according to a market source.

Phoenix Park CLO priced €236 million of class A-1 senior secured floating-rate notes (Aaa//) at Euribor plus 135 bps.

The CLO sold €47 million of class A-2 senior secured floating-rate notes (Aa2//) at Euribor plus 210 bps; €24 million of class B senior secured deferrable floating-rate notes (A2//) at Euribor plus 255 bps; €23 million of class C senior secured deferrable floating-rate notes (Baa2//) at Euribor plus 350 bps; €24 million of class D senior secured deferrable floating-rate notes (Ba2//) at a discounted margin of Euribor plus 600 bps and €14 million of class E senior secured deferrable floating-rate notes (B2//) at a discounted margin of Euribor plus 700 bps.

The deal included €45.25 million of subordinated notes in the equity tranche.

BofA Merrill Lynch was the placement agent.

Blackstone/GSO Debt Funds Management will manage the CLO.

The portfolio is collateralized primarily by secured senior obligations.

Blackstone/GSO Debt Funds Management was last in the European primary market on April 3 when it brought the €513,625,000 Holland Park CLO Ltd. transaction.

The subsidiary of asset manager GSO Capital Partners LP priced three European CLO deals in 2013.

Ares prices European CLO

Ares Management priced a €325 million European CLO deal on Friday, according to a market source.

Ares European CLO VII priced the AAA-rated floating-rate notes at Euribor plus 135 bps.

The CLO sold the AA tranche of floating-rate notes at Euribor plus 200 bps and the A-rated floating-rate notes at Euribor plus 245 bps.

The CLO priced the BBB-rated floating-rate notes at Euribor plus 330 bps, the BB tranche of floating-rate notes at Euribor plus 490 bps and the B-rated floating-rate notes at Euribor plus 550 bps.

The deal also included subordinated notes.

Additional tranche details were not available by press-time.

Citigroup Global Markets Inc. arranged the transaction.

Ares Management will manage the CLO.

The Los Angeles-based asset manager’s last European CLO deal was the €310.5 million Ares European CLO VI Ltd. transaction priced on July 17, 2013.

Jefferies raises $562.5 million

Jefferies Finance sold $562,525,000 of notes due 2026 in the CLO transaction on Friday, according to a market source.

JFIN CLO 2014-II Ltd./JFIN CLO 2014-II LLC priced $312 million of class A-1A floating-rate notes at Libor plus 150 bps; $31.75 million of 3.227% class A-1B fixed-rate notes; $52.7 million of class A-2A floating-rate notes at Libor plus 200 bps and $10 million of 4.476% class A-2B fixed-rate notes.

The CLO sold $25 million of class B-1 floating-rate notes at Libor plus 265 bps; $2.5 million of 5.544% class B-2 fixed-rate notes; $34.8 million of class C floating-rate notes at Libor plus 325 bps; $33.9 million of class D floating-rate notes at Libor plus 450 bps; $4.6 million of class E floating-rate notes at Libor plus 525 bps and $55,275,000 of subordinated notes.

Citigroup Global Markets Inc. was the placement agent.

Jefferies will manage the CLO, which is backed primarily by senior secured loans.

The CLO has a two-year non-call period and a four-year reinvestment period.

Proceeds from the offering will be used to purchase assets to reach a target portfolio of about $550 million of primarily leveraged loans.

The deal is Jefferies’ third CLO offering in 2014. The firm priced the $522.2 million JFIN CLO 2014 Ltd./JFIN CLO 2014 LLC transaction in February and the $309 million JFIN MM CLO 2014-II Ltd./JFIN MM CLO 2014-II LLC deal in March.

New York City-based Jefferies Finance, a commercial finance firm co-owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co., brought one CLO transaction in 2013.

Sankaty offers $415.25 million deal

Coming up in the pipeline, Sankaty Advisors intends to price $415.25 million of notes due 2026 in a CLO transaction, according to a market source.

The Avery Point V CLO Ltd./Avery Point V CLO Corp. transaction includes $2 million of class X floating-rate notes (//AAA/); $152 million of class A floating-rate notes (//AAA); $100 million of class A floating-rate loans (//AAA); $43.5 million of class B floating-rate notes; $24.5 million of class C floating-rate notes; $25 million of class D floating-rate notes; $25 million of class E floating-rate notes; $5 million of class F floating-rate notes and $38.25 million of subordinated notes.

GreensLedge Capital Markets LLC is the placement agent.

Sankaty Advisors will manage the CLO.

Collateral consists primarily of senior secured loans.

The CLO will have a two-year non-call period and a four-year reinvestment period.

Proceeds from the deal will be used to purchase assets to reach a target portfolio of about $400 million of leveraged loans.

Sankaty Advisors refinanced the $362 million Race Point V CLO, Ltd. transaction in February and priced the $727.5 million Avery Point IV CLO Ltd./Avery Point IV CLO Corp. deal in March.

The Boston-based credit investment unit of Bain Capital LLC priced two CLOs in 2013.

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