Blackstone/GSO prices €615.69 million; NIBC preps €304.5 million CLO; Hildene plans deal

By Cristal Cody

Tupelo, Miss., Dec. 9 - GSO Capital Partners LP sold an upsized €615.69 million of notes in the Richmond Park CLO Ltd. transaction, its third European deal of the year, according to market sources.

The offering was upsized from about €414 million.

The European market is expected to see another deal from NIBC Bank NV, which is firming details for a €304.5 million CLO, according to an informed source.

A total of €7 billion to €7.5 billion of European CLO issuance is expected for 2013, market sources said.

About €6.7 billion of notes brought in 20 European CLOs have closed as of December, according to Moody's Investors Service.

"Whether the pace of issuance in 2013 will hold in 2014 and result in higher volumes of leveraged buyouts in the euro area remains to be seen," Moody's said in a report on Thursday. "Despite the resumption of new issuance in 2013, the outlook for primary European CLO issuance in 2014 is still rather uncertain. The main drivers of new issuance will be the availability of collateral and the impact of new regulations taking effect in 2014."

In the U.S. primary market, New York Life Investment Management LLC sold and closed on a $409.75 million CLO transaction, according to market sources.

Coming up in the pipeline, Hildene Leveraged Credit, LLC expects to price a $309.75 million CLO offering, according to a market source.

Blackstone/GSO prices

At the top of the capital structure, the Richmond Park CLO priced €351.05 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Euribor plus 140 basis points and €74,375,000 of class A-2 senior secured floating-rate notes (Aa2//AA) at Euribor plus 210 bps.

The CLO also sold €34.21 million of class B senior secured deferrable floating-rate notes (A2//A) at Euribor plus 290 bps; €26,785,000 of class C senior secured deferrable floating-rate notes (Baa2//BBB) at Euribor plus 390 bps; €46.11 million of class D senior secured deferrable floating-rate notes (Ba2//BB) at Euribor plus 525 bps; €15.61 million of class E senior secured deferrable floating-rate notes (B2//B-) at Euribor plus 600 bps and €67.55 million of subordinated notes.

Citigroup Global Markets Inc. was the underwriter.

The transaction is backed primarily by a leveraged loan portfolio of senior secured loans or senior secured notes.

Blackstone/GSO Debt Funds Europe Ltd., a unit of Blackstone Group LP, will manage the CLO.

Proceeds will be used to purchase a €595 million portfolio of European leveraged loans and bonds.

GSO Capital, the credit division of New York-based Blackstone, was last in the European market in August with the €413.2 million Herbert Park BV transaction, which included a €235 million AAA-rated tranche priced at Euribor plus 135 bps. The firm also sold the €403.35 million Grand Harbour I BV CLO deal in May.

New York Life deal closes

New York Life Investment Management sold $409.75 million of notes due Jan. 19, 2026 in the Flatiron CLO 2013-1 Ltd./Flatiron CLO 2013-1 LLC deal via Merrill Lynch, Pierce, Fenner & Smith Inc., according to market sources.

Flatiron CLO 2013-1 priced $250.75 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Libor plus 140 bps; $55.75 million of class A-2 senior secured floating-rate notes (Aa2//AA) at Libor plus 200 bps; $17 million of class B senior secured deferrable floating-rate notes (A2) at Libor plus 275 bps; $25 million of class C senior secured deferrable floating-rate notes (Baa3) at Libor plus 360 bps; $18 million of class D senior secured deferrable floating-rate notes (Ba3) at Libor plus 490 bps; $12 million of class E senior secured deferrable floating-rate notes (B2) at Libor plus 535 bps and $31.25 million of subordinated notes.

New York Life Investment Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Proceeds will be used to repay interim financing and to purchase assets to reach a target portfolio of about $400 million of leveraged loans.

New York Life Investments is a subsidiary of mutual life insurance company New York Life Insurance Co.

North Westerly CLO ahead

In the European pipeline, NIBC Bank plans to sell €304.5 million of notes in a Regulation S and Rule 144A CLO offering, according to an informed source.

The North Westerly CLO IV 2013 BV deal includes €152 million of class A-1 notes (/AAA/AAA); €25 million of class A-2 notes (/AAA/AAA); €37 million of class B notes (/AA/AA); €17.5 million of class C notes (/A/A); €16 million of class D notes (/BBB/BBB); €21 million of class E notes (/BB/BB) and €36.5 million of subordinated notes.

RBS Securities Inc. is the placement agent.

NIBC Bank will manage the CLO, which will invest primarily in senior secured first-lien leveraged loans.

Proceeds from the offering will be used to purchase a €300 million portfolio of European and U.S. leveraged loans and bonds.

The deal will be the Hague, Netherlands-based firm's first European CLO transaction since it priced the €410 million North Westerly CLO III BV offering in 2006.

Hildene plans CLO

In the U.S. deal pipeline, Hildene Leveraged Credit is set to offer $309.75 million of notes due Jan. 17, 2026, according to a market source.

The Hildene CLO I Ltd./Hildene CLO I LLC deal includes $187.5 million of class A notes (//AAA); $28.5 million of class B-1 notes; $10 million of class B-2 notes; $16.5 million of class C notes; $18.5 million of class D notes; $14.5 million of class E notes; $6 million of class F notes and $28.25 million of subordinated notes.

Merrill Lynch, Pierce, Fenner & Smith Inc. will arrange the transaction.

Hildene Leveraged Credit will manage the CLO. Babson Capital Management LLC is the successor manager if Hildene resigns or is removed as portfolio manager.

The CLO is collateralized primarily by broadly syndicated senior secured corporate loans.

Proceeds will be used to purchase assets to reach a target portfolio of about $300 million of leveraged loans.

Hildene Leveraged Credit is a division of New York-based asset management firm Hildene Capital Management, LLC.

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