Golub brings $729.88 million CLO; ICG prices $400.2 million; BlackRock taps market

Chicago, Aug. 29 – The primary CLO market was active on Thursday with $1.36 billion in new issuance.

The largest deal, by far, is a new offering from Golub Capital for $729.88 million in eight tranches, including the subordinated note class.

Another experienced issuer came to market in ICG Debt Advisors’ $400.2 million new offering in eight classes of notes.

BlackRock Capital Investment Advisors LLC added $230 million to the August total in its new offering in four classes, including loans and notes.

In the secondary market, investment-grade trading picked up with $187.02 million of CBO/CDO/CLO paper bought and sold, according to Trace data. The average price was 95.2.

In the non-investment grade market, trading was about half of its total on Wednesday, at $19.5 million in only nine trades. The average price was 90.8.

Golub prices CLO 45(M)

Golub Capital priced a $729.88 million transaction with a portfolio that will be collateralized by at least 95% in senior secured loans.

Slated to settle in early September, the portfolio can have a maximum of 12.5% of the loans in the collateral pool that are covenant-lite.

The excess spread was calculated at 3.21%.

According to S&P Global Ratings, the top five industry distributions in the portfolio are: software; hotels, restaurants, and leisure; healthcare providers and services; specialty retail and health care technology.

Golub, an experienced CLO issuer, has $16.3 billion in total CLO assets under management in 25 reinvesting CLOs.

Morgan Stanley & Co. LLC is the initial purchaser.

ICG prices $400.2 million

ICG Debt Advisors also brought a new offering to market, scheduled to close in mid-September.

The $400.2 million offering has a weighted average rating factor from Kroll Bond Rating Agency (K-WARF) of 2284, which is in line with the average over the last 12 months, according to KBRA.

Keeping with an emerging trend, the document provisions include Libor replacement language and specifically includes language about the Secured Overnight Financing Rate (SOFR) as the replacement.

The weighted average spread for the CLO is 3.8%.

The issuer has $4.5 billion in U.S. CLOs under management.

BlackRock Elbert CLO V

In a CLO that is set for initial funding on or before Sept. 10, BlackRock Elbert has priced a $230 million new CLO offering comprised of one class of loans, two classes of secured notes and one class of subordinated notes.

The transaction is collateralized by a portfolio of senior secured middle-market corporate loans.

At least 90% of the portfolio must be first-lien, senior secured loans and eligible investments.

Up to 30% of the CLO can be covenant-lite.

Natixis Securities Americas LLC acted as arranger.

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