By Cristal Cody
Tupelo, Miss., Feb. 27 - GC Investment Management LLC priced a $453.12 million collateralized loan obligation offering of notes due April 2026 in six tranches, according to a market source on Thursday.
At the top of the capital structure, Golub Capital Partners CLO 18 (M) Ltd./Golub Capital Partners CLO 18 (M) LLC sold $193.5 million of class A-1 floating-rate notes (/AAA/) at Libor plus 185 basis points and $40 million of class A-2 floating-rate notes (/AAA/) at Libor plus 150 bps, which step up to Libor plus 215 bps 17 months after closing.
The CLO also priced $39.25 million of class B floating-rate notes (/AA/) at Libor plus 250 bps, $36 million of class C deferrable floating-rate notes (/A/) at Libor plus 350 bps, $26 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 400 bps and $118.37 million of subordinated notes.
Wells Fargo Securities LLC arranged the transaction.
GC Investment Management LLC will manage the CLO.
The notes are backed primarily by a revolving pool of middle-market senior secured loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
GC Investment Management, an affiliate of New York-based middle market lender Golub Capital, priced three CLO deals in 2013. The firm brought the $513.2 million Golub Capital Partners CLO 15 Ltd./Golub Capital Partners CLO 15 LLC offering, the $502.51 million Golub Capital Partners CLO 16 Ltd./Golub Capital Partners CLO 16 LLC deal and the $556.15 million Golub Capital Partners CLO 17 Ltd./Golub Capital Partners CLO 17 LLC transaction.
| Issuer: | Golub Capital Partners CLO 18 (M) Ltd./Golub Capital Partners CLO 18 (M) LLC
|
| Amount: | $453.12 million
|
| Maturity: | April 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
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| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | GC Investment Management LLC
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| Call feature: | 2016
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| Pricing date: | Feb. 27
|
|
|
| Class A-1 notes
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| Amount: | $193.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | Standard & Poor's: AAA
|
|
|
| Class A-2 notes
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| Amount: | $40 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 150 bps, which step up to Libor plus 215 bps 17 months after closing
|
| Rating: | Standard & Poor's: AAA
|
|
|
| Class B notes
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| Amount: | $39.25 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 250 bps
|
| Rating: | Standard & Poor's: AA
|
|
|
| Class C notes
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| Amount: | $36 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 350 bps
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| Rating: | Standard & Poor's: A
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|
|
| Class D notes
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| Amount: | $26 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 400 bps
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| Rating: | Standard & Poor's: BBB
|
|
|
| Equity tranche
|
| Amount: | $118.37 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
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