Anchorage prices; GSO/Blackstone prep $717.4 million CLO; notes in 'holding pattern'

By Cristal Cody

Tupelo, Miss., May 7 - Anchorage Capital Group, LLC raised $621.5 million in the Anchorage Capital CLO 4, Ltd./Anchorage Capital CLO 4, LLC offering, according to a market source.

The CLO sold the AAA tranche at Libor plus 145 basis points, in line with recent issuance that has priced slightly tighter than the Libor plus 150 bps range seen over the year.

GSO/Blackstone Debt Funds Management LLC is expected to be in the primary market later in the week with a $717.4 million CLO deal, according to a market source.

"There's a lot" of transactions still in the works with about $12 billion of CLOs in the pipeline, one source said.

In the secondary market, "things haven't changed much over the last few weeks," another market source said. "We're sort of in a holding pattern right now."

CLO AAA notes remain stuck in the Libor plus 150 bps area, sources said.

Anchorage Capital prices

Anchorage Capital Group priced $621.5 million of notes due July 6, 2026 in the CLO deal, according to a market source.

Anchorage Capital CLO 4 sold $264.5 million of class A-1A senior secured floating-rate notes (Aaa//AAA) at Libor plus 145 bps; $100 million of class A-1B senior secured floating-rate notes (Aaa//AAA) at Libor plus 155 bps and $79.5 million of class A-2 senior secured floating-rate notes (Aa2) at Libor plus 216 bps.

Lower in the capital structure, the CLO priced $27.5 million of class B senior secured deferrable floating-rate notes (A2) at Libor plus 300 bps; $42 million of class C senior secured deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $37 million of class D secured deferrable floating-rate notes (Ba3) at Libor plus 475 bps and $15 million of class E secured deferrable floating-rate notes (B3) at Libor plus 550 bps.

The deal included $56 million of subordinated notes in the equity tranche.

BofA Merrill Lynch was the placement agent.

Anchorage Capital will manage the CLO, which is backed primarily by a portfolio of broadly syndicated senior secured corporate loans.

Proceeds will be used to repay interim financing that allowed the issuer to purchase collateral prior to the closing date and to purchase assets to reach a target portfolio of about $600 million of primarily leveraged loans.

New York City-based Anchorage Capital was in the primary market in February with the $517.75 million Anchorage Capital CLO 3, Ltd./Anchorage Capital CLO 3, LLC deal.

GSO/Blackstone preps CLO

GSO/Blackstone Debt Funds Management plans to price $717.4 million of notes due 2026 in the Seneca Park CLO Ltd./Seneca Park CLO LLC offering, according to a market source.

The deal includes $429.75 million of class A floating-rate notes (Aaa//AAA); $64.5 million of class B-1 floating-rate notes (Aa2); $25 million of class B-2 fixed-rate notes (Aa2); $42 million of class C floating-rate notes (A2); $43.75 million of class D floating-rate notes (Baa3); $40.5 million of class E floating-rate notes (Ba3); $8 million of class F floating-rate notes (B2) and $63.9 million of subordinated notes.

Credit Suisse Securities (USA) LLC is the placement agent.

GSO/Blackstone Debt Funds Management will manage the CLO, which is backed primarily by first-lien senior secured loans.

Proceeds from the deal will be used to purchase a $700 million portfolio of primarily senior secured leveraged loans.

GSO/Blackstone, a New York City-based subsidiary of alternative asset manager GSO Capital Partners LP, was last in the market on April 3 when it priced the $510.32 million Pinnacle Park CLO Ltd./Pinnacle Park CLO LLC transaction.

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