ICG prices $408 million; GC Investment wraps $546.9 million refinancing; spreads firm

By Cristal Cody

Tupelo, Miss., Jan. 24 – Two more managers have refinanced vintage CLO deals so far in 2020.

ICG Debt Advisors LLC priced $411 million of notes in a refinancing of a vintage 2015 broadly syndicated CLO.

GC Investment Management LLC closed Friday on its $400 million second reprint of AAA-rated notes from a vintage 2015 middle-market CLO.

Meanwhile, the new issue market is starting to awaken.

“The U.S. primary CLO market is creaking to life” with two standard CLOs priced so far in 2020, according to a Wells Fargo Securities LLC structured products research note on Friday.

“Primary debt levels have tightened, and all-in debt costs on primary CLOs look to have tightened by 15-20 [basis points] compared to late October,” Wells Fargo analysts said in the report. “Refi CLO AAA spreads have settled in the 100 bps area.”

Broadly syndicated primary AAAs are quoted about 1 bp tighter on the week in the Libor plus 127 bps area, while at the bottom of the stack, new issue BB tranches have firmed 25 bps to the Libor plus 625 bps area.

In the secondary market, CLO AAAs are trading unchanged at the Libor plus 110 bps area. BB-rated notes have firmed about 10 bps to the Libor plus 625 bps area, according to the note.

Elsewhere, leveraged loan funds saw outflows of $14 million for the past week ended Wednesday following inflows of $327 million for the week ended Jan. 15, Fitch Ratings said in a report on Friday.

ICG refinances CLO

ICG Debt Advisors priced $411 million of notes in a refinancing of the ICG US CLO 2015-2, Ltd./ICG US CLO 2015-2 LLC transaction, according to a market source.

ICG US CLO 2015-2-R, Ltd./ICG US CLO 2015-2-R LLC sold $250 million of class A-1 senior secured floating-rate notes at Libor plus 137 bps at the top of the capital structure.

Citigroup Global Markets Inc. was the refinancing placement agent.

The maturity was extended to Jan. 17, 2033 from the original due date of Jan. 15, 2028.

In the original deal issued Nov. 5, 2015, the CLO sold $196 million of the class A-1 senior term notes at Libor plus 152 bps.

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

The New York-based firm is a U.S. subsidiary of London-based parent company Intermediate Capital Group plc.

GC Investment reprints

GC Investment Management closed on its $400 million previously reported second reprint of notes from a vintage 2015 middle-market CLO, according to a market source and a notice of executed second supplemental indenture on Friday.

Golub Capital Partners CLO 28(M)-R Ltd./Golub Capital Partners CLO 28(M)-R LLC sold $400 million of class A-RR floating-rate notes due Feb. 5, 2032 (A+) at Libor plus 212 bps.

The reset CLO also issued $146.9 million of subordinated notes due Jan. 23, 2120.

Wells Fargo Securities LLC was the refinancing placement agent.

The notes originally were issued Dec. 18, 2015 and were first refinanced Dec. 12, 2017.

In the first refinancing, $400 million of class A-R notes due Nov. 5, 2027 were priced at Libor plus 133.75 bps.

The CLO is backed primarily by middle-market senior secured corporate loans.

GC Investment Management is an affiliate of New York-based middle market lender Golub Capital.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.