Monthly issuance up; Golub sells middle-market CLO; Invesco prices in line with 2014 deals

By Cristal Cody

Tupelo, Miss., Feb. 27 - The collateralized loan obligation market is ending February on a stronger note with more than $7 billion of total issuance for the month, according to informed sources on Thursday.

January saw less than $3 billion of new CLO issuance, sources said.

GC Investment Management LLC was in the market with a $453.12 middle-market CLO deal and priced the AAA tranche at Libor plus 185 basis points, an informed source said.

In the broadly syndicated CLO primary market, details emerged on Invesco Senior Secured Management, Inc.'s $669.75 million Limerock CLO II Ltd./Limerock CLO II LLC transaction. The Limerock CLO II priced the AAA slice at Libor plus 150 basis points, in line with other U.S. CLO issuance in 2014, according to a market source.

GC Investment prices

GC Investment Management priced $453.12 million of notes due April 2026 in six tranches in the Golub Capital Partners CLO 18 (M) Ltd./Golub Capital Partners CLO 18 (M) LLC deal, an informed source said.

The CLO sold $193.5 million of class A-1 floating-rate notes (/AAA/) at Libor plus 185 bps 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 will manage the CLO.

The notes are backed primarily by a revolving pool of middle-market senior secured loans.

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 Golub Capital Partners CLO 17 Ltd./Golub Capital Partners CLO 17 LLC transaction.

Invesco sells $669.75 million

Invesco Senior Secured Management priced $669.75 million of notes due April 2026 in the Limerock CLO II transaction, according to an informed source.

The CLO sold $406.25 million of class A floating-rate notes (/AAA/) at Libor plus 150 bps; $59.75 million of class B-1 floating-rate notes (/AA/) at Libor plus 210 bps; $20 million of 4.3934% class B-2 fixed-rate notes (/AA/); $47 million of class C-1 deferrable floating-rate notes (/A/) at Libor plus 285 bps; $20 million of 5.1952% class C-2 deferrable fixed-rate notes (/A/); $34.75 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 325 bps; $30.25 million of class E deferrable floating-rate notes (/BB/) at Libor plus 450 bps; $16 million of class F deferrable floating-rate notes (/B/) at Libor plus 550 bps and $54.25 million of subordinated notes.

Credit Suisse Securities (USA) LLC arranged the deal.

Invesco Senior Secured Management will manage the CLO, which is backed by a revolving pool of primarily broadly syndicated senior secured corporate loans.

Invesco Senior Secured Management, a subsidiary of Atlanta-based Invesco, Ltd., priced the $413.5 million North End CLO, LLC/North End CLO, Ltd. deal and the $411.9 million Nomad CLO Ltd./Nomad CLO LLC offering in 2013.

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