Investcorp prices €413.5 million; GSO/Blackstone, Telos reset CLOs; spreads widening

By Cristal Cody

Tupelo, Miss., April 16 – CLO deal action remains steady in both new issues and refinancings, according to market sources on Monday.

Investcorp Credit Management EU Ltd. tapped the European primary market with a €413.5 million new CLO.

In the U.S. primary market, GSO/Blackstone Debt Funds Management LLC sold $512.11 million of notes in the Chenago Park CLO, Ltd./Chenago Park CLO, LLC transaction via BNP Paribas Securities Corp., sources said. Final pricing terms were not immediately available.

Looking at refinancing action, GSO/Blackstone Debt Funds Management priced $564 million of notes in a reset of a vintage 2015 CLO.

Also, Telos Asset Management LLC priced $411.1 million of notes in a refinancing and reset of a 2014 CLO.

The heavy supply is weighing on spreads, according to a BofA Merrill Lynch analysts report released on Monday.

“Relative to levels at the start of the year, this week’s deals priced around 35 [basis points] wider at the BBB level and 75 [bps] wider at the BB level,” the analysts said. “Wide prints in the primary market fed through to the U.S. CLO secondary market, and we got the sense that many investors were using this increase in supply as an opportunity to rebalance their portfolios. While new issue supply has been moderately heavy, it is the elevated number of refi, reset and reissue transactions that has weighed most on spreads.”

More than $31 billion of new CLOs have priced year to date, while more than $41 billion of vintage CLOs have been refinanced, BofA Merrill Lynch reports. The European CLO market has seen more than €7 billion of new issuance and more than €5 billion of refinanced CLOs year to date.

Investcorp places CLO

Investcorp Credit Management EU priced €413.5 million of notes due April 14, 2031 in the Harvest CLO XIX DAC deal, according to a market source.

Harvest CLO XIX sold €248 million of class A senior secured floating-rate notes (Aaa//AAA) at Euribor plus 77 bps in the senior slice.

Merrill Lynch International was the placement agent.

The CLO manager has priced one new CLO and refinanced one vintage CLO year to date.

In 2017, Investcorp priced two new euro-denominated CLOs and refinanced six vintage European CLOs.

The CLO manager is a subsidiary of Bahrain-based Investcorp Bank BSC.

GSO/Blackstone reprices

GSO/Blackstone Debt Funds Management sold $564 million of notes in a refinancing and reset of the vintage 2015 Cumberland Park CLO Ltd./Cumberland Park CLO LLC transaction, according to a market source and a notice of changed pages to proposed first supplemental indenture on Friday.

Cumberland Park CLO priced $362 million of class A-R senior secured floating-rate notes at Libor plus 77.5 bps at the top of the capital structure.

Credit Suisse Securities (USA) LLC arranged the deal.

The reset notes are due July 20, 2028. The original maturity was July 20, 2026.

In the original $617.5 million Cumberland Park CLO offering issued Aug. 19, 2015, the CLO sold $362 million of the class A senior secured floating-rate notes at Libor plus 141 bps.

New York City-based investment management firm GSO/Blackstone is a subsidiary of the Blackstone Group, LP.

Telos resets CLO 2014-5

Telos Asset Management priced $411.1 million of notes in a refinancing and reset of the Telos CLO 2014-5, Ltd./Telos CLO 2014-5, LLC deal, according to a market source and a notice of changed pages to proposed first supplemental indenture on Friday.

The CLO sold the $221.5 million of class A-1-R senior secured floating-rate notes at Libor plus 95 bps.

Jefferies LLC was the refinancing placement agent.

The reset notes are due April 17, 2028. The maturity was extended from the original April 17, 2025 maturity.

In the original $412.35 million deal issued May 1, 2014, the CLO priced $252 million of class A senior secured floating-rate notes at Libor plus 155 bps.

The credit management firm is a subsidiary of New York-based Tiptree Financial Inc.

© 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.