GSO/Blackstone Debt Funds offers $1.02 billion CLO; securitized secondary trading thins

By Cristal Cody

Tupelo, Miss., Feb. 28 – GSO/Blackstone Debt Funds Management LLC is in the CLO deal pipeline with $1.02 billion of notes in the CLO manager’s first U.S. dollar-denominated transaction of the year.

Elsewhere, secondary trading has been thin over the first two sessions of the week, according to Trace data.

On Tuesday, $19.05 million of investment-grade CBO/CDO/CLO issues were traded, while trading was too light to register in non-investment-grade securities during the session.

Trading volume on Monday was too thin to register in both high-grade and lower-rated CBO/CDO/CLO issues.

GSO/Blackstone to price

GSO/Blackstone Debt Funds Management plans to price $1,025,000,000 of notes due April 17, 2031 in the Cook Park CLO, Ltd./Cook Park CLO, LLC transaction, according to a market source.

The deal includes $595 million of class A-1 senior secured floating-rate notes (AAA); $60 million of class A-2 floating-rate notes (non-rated); $90 million of class B senior secured floating-rate notes (AA); $74 million of class C mezzanine secured deferrable floating-rate notes (A); $61 million of class D mezzanine secured deferrable floating-rate notes (BBB-); $38 million of class E deferrable floating-rate notes (BB-) and $107 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

The offering is backed primarily by broadly syndicated first-lien senior secured corporate loans.

The New York City-based investment management firm is a subsidiary of the Blackstone Group, LP.

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