August CLO issuance climbs to more than $6 billion; GoldenTree, Highbridge deals detailed

By Cristal Cody

Tupelo, Miss., Aug. 30 - Collateralized loan obligation issuance in August rose to more than $6 billion following deals from American Capital CLO Management, LLC, Brigade Capital Management, LLC and Apollo Credit Management LLC over the month, sources report.

More than $52 billion of new CLOs have priced year to date, according to a market source on Friday.

The CLO pipeline likely will fill up following the Labor Day holiday with more than $15 billion in deals expected in the months ahead, an informed source said.

Details emerged on Friday for GoldenTree Asset Management LP's $195 million CLO and Highbridge Principal Strategies, LLC's $412.75 million CLO that priced in August.

Market activity otherwise was light with many offices short-staffed ahead of the long Labor Day holiday weekend, according to sources.

GoldenTree prices

New York-based GoldenTree Asset Management sold $195 million of notes due Oct. 18, 2024 in the GT Loan Financing I, Ltd./GT Loan Financing I, LLC CLO, a source reports.

GT Loan Financing I priced $110 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 127 basis points.

The CLO also sold $24 million of class B senior secured floating-rate notes (Aa2) at Libor plus 175 bps; $11 million of class C mezzanine deferrable floating-rate notes (A2) at Libor plus 325 bps and $50 million of subordinated notes.

Greensledge Capital Markets, LLC and Natixis Securities Americas LLC were co-placement agents.

GoldenTree Asset Management is the CLO manager.

Proceeds from the offering will be used to purchase a portfolio of about $190 million of primarily senior secured leveraged loans.

Highbridge CLO set to close

CLO manager Highbridge Principal Strategies raised $412.75 million in the offering of notes due Sept. 2, 2024, which is set to close on Sept. 2, according to a market source.

The Highbridge Loan Management 2013-2, Ltd./Highbridge Loan Management 2013-2 LLC CLO priced $260 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 130 bps; $43 million of class A-2 senior secured floating-rate notes (A2) at Libor plus 190 bps; $22.5 million of class B-1 senior secured deferrable floating-rate notes (/A/) at Libor plus 300 bps; and $9.5 million of 6% class B-2 senior secured deferrable fixed-rate notes (/A/).

The CLO also sold $19.5 million of class C senior secured deferrable floating-rate notes (/BBB/) at Libor plus 370 bps; $16 million of class D senior secured deferrable floating-rate notes (/BB/) at Libor plus 525 bps; $8 million of class E senior secured deferrable floating-rate notes (/B/) at Libor plus 580 bps; and $34.25 million of subordinated notes.

Citigroup Global Markets Inc. was the underwriter.

The New York-based investment management firm last was in the CLO market with the $313 million Highbridge Loan Management 2012-1 Ltd. deal in September 2012.

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