GoldenTree prices $710.65 million CLO; PineBridge brings new, refinanced CLOs; spreads firm

By Cristal Cody

Tupelo, Miss., March 13 – New CLO deal action is picking up in March, while the refinancing pace continues to remain strong, according to market sources on Monday.

GoldenTree Loan Management LP brought a new $710.65 million CLO deal to the market.

PineBridge Investments LLC member company PineBridge Galaxy LLC priced $409 million of notes in a new CLO.

PineBridge Investments also refinanced priced $332 million of notes in a CLO dating from 2013.

Year to date, U.S. CLO volume totals more than $51 billion, including about $14 billion of new issuance and about $32 billion of refinancings, sources report.

“The pace of U.S. CLO refinancings continues to stay steady, averaging 7 deals for $3.1 [billion] weekly in 2017,” according to a J.P. Morgan Securities LLC analysts’ note.

J.P. Morgan Securities analysts forecast AAA spreads to get as tight as Libor plus 110 basis points by the end of the year.

CLO 3.0 AAA spreads ended Friday 2 bps tighter on the week at Libor plus 122 bps.

New issue AAAs are pricing 20 bps tighter in 2017 at Libor plus 122 bps-138 bps area, according to J.P. Morgan. New CLO B-rated tranches have come in 228 bps year to date to price at the Libor plus 745 bps-1000 bps area.

In the secondary market, 2.0 CLO spreads tightened with AAAs trading 5 bps tighter at Libor plus 115 bps on Friday, according to a BofA Merrill Lynch note.

Bs were 50 bps better on the week at Libor plus 825 bps.

“Favorable technicals pushed 2.0 spreads 5-50 [bps] tighter across the capital stack,” BofA Merrill Lynch analysts said in the note.

GoldenTree prices $710.65 million

GoldenTree Loan Management sold $710.65 million of notes due April 20, 2030 in a new 2017 CLO deal, according to a market source.

GoldenTree Loan Management US CLO 1 Ltd./ GoldenTree Loan Management US CLO 1 Inc. priced $428.75 million of class A senior secured floating-rate notes at Libor plus 122 bps in the senior tranche.

Morgan Stanley & Co. LLC was the lead placement agent.

GoldenTree Loan Management, part of GoldenTree Asset Management, LP, is the CLO manager.

The transaction is backed primarily by broadly syndicated first lien senior secured loans.

GoldenTree Asset Management has priced one new CLO and refinanced one vintage CLO year to date.

In 2016, GoldenTree Asset Management placed one U.S. CLO and refinanced two vintage CLOs.

The private investment firm is based in New York City.

PineBridge sells new CLO

PineBridge Galaxy priced $409 million of notes due April 20, 2029 in a new CLO offering, according to a market source.

Galaxy XXIII CLO Ltd./Galaxy XXIII CLO LLC sold $253 million of class A senior floating-rate notes at Libor plus 128 bps in the senior tranche.

Morgan Stanley & Co. LLC was the placement agent.

PineBridge Galaxy will manage the CLO.

The deal is collateralized primarily by broadly syndicated first lien senior secured corporate loans.

PineBridge Investments has priced one new CLO and refinanced one vintage CLO year to date.

The asset management firm is based in New York City.

PineBridge refinances

PineBridge Investments priced $332 million of notes due Nov. 16, 2025 in a refinancing of a vintage 2013 broadly syndicated collateralized loan obligation offering, according to a market source.

Galaxy XVI CLO Ltd./Galaxy XVI CLO LLC sold $113 million of class A-1R floating-rate notes at Libor plus 113 bps at the top of the capital stack.

Goldman Sachs & Co. was the refinancing agent.

PineBridge Investments will continue to manage the CLO.

Proceeds from the offering will be used to redeem the original notes.

PineBridge Investments has priced one new CLO and refinanced one vintage CLO year to date.

The asset management firm is based in New York City.

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