Oaktree, GSO/Blackstone, Symphony, Och-Ziff, BlueMountain price; Maranon CLO debuts

By Cristal Cody

Tupelo, Miss., Dec. 21 – Details emerged on new CLO transactions priced in December, bringing the month’s issuance to about $5 billion, according to market sources and Prospect News data on Monday.

GSO/Blackstone Debt Funds Management LLC sold $506.5 million in its CLO deal.

Oaktree Capital Management LP priced a $435.2 million three-part CLO.

Symphony Asset Management LLC printed a $504.5 million offering.

Och-Ziff Loan Management LP placed a $507.42 million CLO.

BlueMountain Capital Management LLC sold $505.75 million of notes in the firm’s fourth CLO offering of the year.

The middle-market space saw its first deal since October from debut manager Maranon Capital, LP, which priced a $354.75 million CLO and placed the AAA-rated tranche at Libor plus 210 basis points.

Middle-market CLO issuance has slowed, with just two deals priced since October. Total year-to-date middle-market volume is $5.8 billion from 14 transactions, according to a Wells Fargo Securities, LLC report on Monday.

“BSL CLO AAA tranches have hovered in the 150-160 [bps] range in recent weeks, while recent MM CLO AAA tranches were priced between 200 bps and 210 bps,” Wells Fargo analysts said in the note. “The lack of MM CLO issuance and increased market volatility could cause spreads to widen further.”

Secondary trading ‘muted’

In the secondary market, broadly syndicated CLO spreads have been mostly unchanged in the days following the Federal Reserve’s interest rate hike.

CLO 2.0 AAA-rated notes were quoted at Libor plus 165 bps, while BB spreads were flat at Libor plus 825 bps, according to BofA Merrill Lynch.

“U.S. CLO spreads remain unchanged amid fairly muted trading activity,” BofA Merrill Lynch analysts said in a note. “We maintain our belief that the recent spread widening in credit segments of the securitized products market is due to year-end liquidity which we believe would soon be lifted.”

Total U.S. CLO BWIC volume has increased 50% from the same period last year to $35.1 billion, based on original notional amounts, according to a J.P. Morgan Securities LLC note. AAA and BB tranches are the most active in BWIC volumes, JPMorgan said.

GSO/Blackstone brings CLO

In primary action, GSO/Blackstone Debt Funds Management sold $506.5 million of notes due Jan. 20, 2027 in a new CLO offering via Citigroup Global Markets Inc., according to a market source.

Webster Park CLO Ltd./Webster Park CLO LLC priced $300.8 million of class A-1 senior secured floating-rate notes at Libor plus 150 bps at the top of the capital stack.

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

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

The New York City-based subsidiary of alternative asset manager GSO Capital Partners LP placed five U.S. CLO transactions in 2014.

Oaktree raises $435.2 million

Oaktree Capital Management tapped the market with a $435.2 million offering of notes due Oct. 18, 2027 in the Oaktree EIF I Series A1 Ltd./Oaktree EIF I Series A1 LLC transaction, according to a market source.

The CLO priced $262 million of class A floating-rate notes (Aaa/AAA) at Libor plus 162 bps in the senior tranche.

MUFG was the placement agent.

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

Oaktree Capital Management has priced three CLO deals year to date.

The Los Angeles-based asset management firm, a subsidiary of Oaktree Capital Group, LLC, brought four CLO transactions to market in 2014.

Symphony sells $504.5 million

Symphony Asset Management priced $504.5 million of broadly syndicated CLO notes in the Symphony Credit Opportunities Fund CLO 2 Ltd. transaction, according to a market source.

The CLO sold $260 million of class A floating-rate notes at Libor plus 165 bps at the top of the capital structure.

BNP Paribas Securities Corp. was the placement agent.

Symphony Asset Management has priced one CLO offering and refinanced one vintage CLO deal over the year.

The San Francisco-based asset management firm brought two CLO transactions to market in 2014.

Och-Ziff prices OZLM XIV CLO

Och-Ziff Loan Management placed $507.42 million of notes due Jan. 15, 2029 in the OZLM XIV, Ltd./OZLM XIV LLC offering, according to a market source.

The CLO priced $256.25 million of class A-1A senior secured floating-rate notes at Libor plus 155 bps in the AAA-rated tranche.

Deutsche Bank Securities, Inc. was the placement agent.

Proceeds from the deal will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.

Och-Ziff Loan Management has priced four CLO deals year to date.

The firm, an affiliate of New York City-based alternative asset manager Och-Ziff Capital Management Group LLC, sold four CLO offerings in 2014.

BlueMountain prints CLO

BlueMountain Capital Management sold $505.75 million of notes due Jan. 20, 2027 in the BlueMountain CLO 2015-4 Ltd./BlueMountain CLO 2015-4 LLC transaction, according to a market source.

The CLO priced $310 million of class A senior secured floating-rate notes (Aaa/AAA) at Libor plus 150 bps at the top of the stack.

BofA Merrill Lynch was the placement agent.

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

BlueMountain Capital Management has priced four CLO transactions year to date.

The New York City-based management firm sold four CLOs in 2014.

Maranon Capital taps market

Maranon Capital priced $354.75 million of notes in a debut middle-market CLO deal, according to a market source.

Maranon Loan Funding 2015-1 Ltd. sold $94 million of class A-1 floating-rate notes (Aaa expected//AAA expected) at Libor plus 210 bps in the triple A-rated slice.

Citigroup Global Markets Inc. was the placement agent.

The Chicago-based investment management firm provides middle-market financing services.

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