CLO volume up in U.S., Europe; Och-Ziff, GSO/Blackstone, Oak Hill price; euro AAAs widen

By Cristal Cody

Eureka Springs, Ark., Nov. 7 – CLO volume is holding strong in the U.S. and European primary markets in front of the U.S. presidential election and the Dec. 24 risk retention deadline.

In the European market, Och-Ziff Europe Loan Management Ltd. priced €413 million of notes in the firm’s first euro-denominated CLO offering.

GLG Partners LP priced €364 million of notes in the firm’s second euro-denominated CLO transaction this year.

In U.S. primary activity, Oak Hill Advisors LP priced a $609 million CLO.

GSO/Blackstone Debt Funds Management LLC sold $562.18 million of notes in a new CLO transaction.

Also, GC Investment Management LLC priced a $410.9 two-part middle-market CLO.

In refinancing action, Par-Four Investment Management, LLC refinanced $256 million of notes in four tranches from a vintage 2014 CLO.

“The new issue calendar should continue to be active as CLOs print before risk retention rules go effective at the end of December,” J.P. Morgan Securities LLC analysts said in a note released on Monday. “In addition, we reiterate our neutral stance on EUR CLO AAAs and note the +12 [basis points] widening in secondary since last week.”

Euro CLO AAAs were quoted ending Friday a generic 13 bps wider on the week at Euribor plus 125 bps area.

U.S. CLO spreads ended the week mostly flat across the stack with AAAs slightly better.

Secondary activity totaled about $750 million over the previous week, according to a BofA Merrill Lynch note released on Monday.

“With bids remaining strong in the senior part of the stack, generic 2.0/3.0 AAA spreads tightened by 5 [bps] to about 135 [bps],” the BofA Merrill Lynch analysts said. “Equity items that traded also switched hands at fairly tight levels. With refi risk remaining elevated and most investors unwilling to pay significantly above par, upside to current senior levels is expected to be limited. Further down the stack, we expect spreads to remain somewhat sticky until YE.”

Och-Ziff prices €413 million

Och-Ziff Europe Loan Management priced €413 million of notes due Jan. 18, 2030 in the firm’s euro-denominated CLO transaction, according to a market source.

OZLME BV sold €230 million of class A senior secured floating-rate notes at Euribor plus 103 bps at the top of the capital structure.

BofA Merrill Lynch was the placement agent.

The deal is collateralized mainly by broadly syndicated senior secured loans and bonds.

The London-based firm is part of alternative asset manager Och-Ziff Capital Management Group LLC.

GLG raises €364 million

GLG Partners priced €364 million of notes due Jan. 15, 2030 in the firm’s second European CLO offering year to date, according to a market source.

GLG Euro CLO II DAC sold €207 million of class A-1 senior secured floating-rate notes at Euribor plus 103 bps in the senior tranche.

Proceeds will be used to purchase a portfolio of about €350 million of mostly European leveraged loans and bonds.

The notes are secured primarily by secured senior loans and bonds.

GLG Partners is an alternative asset manager based in London.

Oak Hill sells $609 million

Oak Hill Advisors sold $609 million of notes due Jan. 20, 2028 in the CLO deal, according to a market source.

OHA Loan Funding 2016-1, Ltd. priced $370 million of class A senior secured floating-rate notes (Aaa/AA) at Libor plus 143 bps in the AAA-rated part.

Morgan Stanley & Co. LLC was the placement agent.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

Oak Hill Advisors priced two CLOs and refinanced one vintage CLO in 2015.

The investment firm is based in New York City.

GSO/Blackstone prices

GSO/Blackstone Debt Funds Management priced $562.18 million of notes due April 15, 2029 in the Bristol Park CLO Ltd./Bristol Park CLO LLC transaction, according to a market source.

The CLO sold $357.5 million of class A senior secured floating-rate notes at Libor plus 142 bps in the AAA-rated tranche.

BNP Paribas Securities Corp. was the placement agent.

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

Proceeds from the offering will be used to purchase a $550 million portfolio of mostly senior secured leveraged loans.

GSO/Blackstone has priced four new U.S. CLOs and refinanced one vintage CLO year to date.

The CLO manager priced six CLOs and refinanced one CLO in 2015.

The New York City-based firm is a subsidiary of alternative asset manager GSO Capital Partners LP.

Par-Four refinances

Par-Four Investment Management refinanced $256 million of notes due July 20, 2026 in the vintage 2014 Tralee CLO III, Ltd. transaction, a market source said.

Tralee CLO III priced $150 million of class A-1-R senior secured floating-rate notes at Libor plus 145 bps in the senior slice.

Deutsche Bank Securities Inc. arranged the refinancing.

Tralee CLO III originally priced $462.67 million of notes in eight tranches on July 9, 2014, including $47.92 million of subordinated notes as equity.

Par-Four Investment Management is a firm based in Woodcliff Lake, N.J.

GC prices two-tranche CLO

GC Investment Management sold $410.9 of notes in the two-part Golub Capital Partners CLO 33 Ltd. deal, according to a market source.

The middle-market manager priced $305 million of class A floating-rate notes at Libor plus 248 bps and $105.9 million of subordinated notes as equity.

Natixis Securities America LLC arranged the offering.

GC Investment Management has priced three CLO deals year to date.

The affiliate of New York-based middle market lender Golub Capital priced two CLOs in 2015.

© 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.