Canyon Capital prices $415.25 million CLO; GSO preps $400 million deal; CLO primary slows

By Cristal Cody

Tupelo, Miss., March 25 - Canyon Capital Advisors LLC brought a $415.25 million collateralized loan obligation deal on Tuesday and priced the AAA tranche at Libor plus 158 basis points, wider than recent issuance, according to an informed source.

Primary activity is expected to slow somewhat, though several deals remain in the pipeline, market sources said.

"There's just been $20-plus billion worth of CLOs issued in less than two months," one source said. "It needs some time to refill."

The deal pipeline declined to about $15.5 billion from $16.5 billion the previous week, according to a market source.

"There's not looking like that many deals," a source said. "It's definitely getting lighter."

GSO Capital Partners LP is expected to be in the primary market with a $400 million deal in the next couple of weeks, according to an informed source.

Canyon Capital prices CLO

Canyon Capital Advisors sold $415.25 million of notes due April 30, 2025 in the CLO deal on Tuesday, according to an informed source.

Canyon Capital CLO 2014-1, Ltd./Canyon Capital CLO 2014-1, LLC priced $260 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 158 bps.

Lower in the capital structure, the CLO sold $48 million of class A-2 senior secured floating-rate notes (Aa2) at Libor plus 175 bps; $28 million of class B senior secured deferrable floating-rate notes (A2) at Libor plus 265 bps; $20 million of class C senior secured deferrable floating-rate notes (Baa3) at Libor plus 325 bps; $16 million of class D senior secured deferrable floating-rate notes (Ba3) at Libor plus 450 bps; $7 million of class E senior secured deferrable floating-rate notes (B2) at Libor plus 530 bps and $36.25 million of subordinated notes.

The equity tranche was upsized from $35.92 million.

Citigroup Global Markets Inc. arranged the deal.

Canyon Capital Advisors will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured loans and eligible investments.

Los Angeles-based alternative asset manager Canyon Capital Advisors was last in the primary market with a CLO deal in 2012 when it priced the $341.5 million Canyon Capital CLO 2012-1, Ltd. transaction.

GSO preps $400 million CLO

GSO Capital Partners plans to price $400 million of notes in the CLO transaction via Wells Fargo Securities LLC, according to an informed source.

GSO/Blackstone Debt Funds Management LLC will manage the CLO.

The firm priced the $413.35 million Keuka Park CLO, Ltd./Keuka Park CLO, LLC offering and the $515.95 million Tryon Park CLO, Ltd./Tryon Park CLO Corp. deal in the U.S. primary market in 2013.

The New York City-based asset management firm is an affiliate of the Blackstone Group LP.

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