Garrison Capital prices $420 million CLO reissue; middle-market active year to date

By Cristal Cody

Tupelo, Miss., Oct. 4 – Garrison Capital Inc. sold $420 million of notes in a middle-market CLO deal that was a reissue of a 2016 vintage offering.

The middle-market CLO space has been active this year with at least three CLO managers, including GSO Capital Partners, LP, pricing debut deals in the primary market in 2018.

CLO middle-market volume year to date totals about $11 billion, according to market sources. In 2017, about $14 billion of middle-market CLOs were priced.

Garrison renames CLO

Garrison Capital priced a $420 million middle-market CLO offering that was a refinancing and reset of a 2016 deal, according to a market source.

The renamed Garrison Funding 2018-2 Ltd./Garrison Funding 2018-2 LLC priced $50 million of class A-1R-R floating-rate notes at Libor plus 158 basis points and $170.4 million of class A-1T-R floating-rate notes at Libor plus 158 bps in the senior tranches.

Natixis Securities America LLC was the placement agent.

The maturity on the notes was extended to Nov. 20, 2029 from Sept. 29, 2027.

In the original $300 million Garrison Funding 2016-2 Ltd. transaction issued Sept. 29, 2016, the CLO sold $25 million of class A-1R revolver notes at par with a coupon of Libor plus 220 bps and $88.15 million of class A-1T term notes at par with a coupon of Libor plus 220 bps.

Proceeds will be used to redeem the original notes.

Garrison Capital, an affiliate of Garrison Investment Group LP, is a New York-based business development company that mostly invests in loans to U.S. middle-market companies.

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