Blackstone/GSO, Palmer Square, Zais, Highbridge price; Trinitas preps CLO; AAAs flat

By Cristal Cody

Eureka Springs, Ark., May 2 – April ended with more of a bang in the CLO primary markets, while May is set to stay busy with several deals in the pipeline, according to sources on Monday.

Details emerged on Blackstone/GSO Debt Funds Management Europe Ltd.’s €558.15 million Elm Park CLO Designated Activity Co. transaction.

In the U.S. primary market, Palmer Square Capital Management LLC brought a $200.78 million new deal.

Zais Group LLC sold a $280.7 million CLO.

Prudential Investment Management, Inc. printed a $401.75 million deal.

Highbridge Principal Strategies LLC priced a $502.55 million CLO transaction.

The week saw about $2.5 billion in new U.S. CLO issuance, the highest weekly total since $3 billion priced in the week ended Dec. 11, 2015, according to a J.P. Morgan Securities LLC note.

Looking ahead to new issuance, Triumph Capital Advisors, LLC affiliate Trinitas Capital Management LLC plans to price a $406.64 million CLO.

“New issue CLO spreads continue to grind tighter with a handful of AAAs reportedly as tight as L+156 [basis points],” JPMorgan analysts said in the report.

In the secondary market, most of the capital stack was flat over the past week, according to the note.

CLO 3.0 AAA spreads were unchanged at Libor plus 157 bps. BBBs continue to tighten and improved another 10 bps over the past week to Libor plus 525 bps.

Blackstone/GSO prices

Blackstone/GSO Debt Funds Management Europe sold €558.15 million of notes due April 15, 2030 in the Elm Park CLO, according to a market source.

The CLO priced €324.5 million of class A-1 senior secured floating-rate notes (Aaa/AAA) at Euribor plus 150 bps and €60.5 million of class A-2 senior secured floating-rate notes (Aa2/AA) at Euribor plus 210 bps in the senior tranches.

The CLO was upsized from an initial €400 million expected offering.

Deutsche Bank AG, London Branch arranged the deal.

The CLO is backed primarily by euro-denominated senior secured loans.

Dublin-based Blackstone/GSO Debt Funds Management Europe, a subsidiary of asset manager GSO Capital Partners LP, priced three euro-denominated CLO deals in 2015.

Palmer Square prints CLO

Palmer Square Capital Management sold $200.78 million of notes due June 21, 2024 in a new CLO offering, according to a market source.

Palmer Square Loan Funding 2016-2 Ltd./Palmer Square Loan Funding 2016-2 LLC priced $135 million of class A-1 floating-rate notes at Libor plus 135 bps in the AAA-rated tranche.

JPMorgan arranged the transaction.

The CLO is non-callable until June 21, 2017 and does not have a reinvestment period.

The offering is backed primarily by broadly syndicated senior secured loans.

Leawood, Kan.-based Palmer Square Capital Management priced three CLOs in 2015.

Zais brings CLO 4

Zais Group sold $280.7 million of notes due May 10, 2025 in a new CLO deal, according to a market source.

Zais CLO 4 Ltd./Zais CLO 4 LLC priced $188 million of class A floating-rate notes (AAA) at Libor plus 155 bps at the top of the structure.

RBC Capital Markets LLC arranged the offering.

Zais Leveraged Loan Manager 4, LLC will manage the CLO.

The CLO, backed primarily by broadly syndicated senior secured loans, is non-callable through Feb. 10, 2017.

Zais Group brought one CLO deal to market in 2015.

The structured credit asset management firm is based in Red Bank, N.J.

Prudential prices Dryden 42

Prudential Investment Management sold $401.75 million of notes in the Dryden 42 Senior Loan Fund/Dryden 42 Senior Loan Fund LLC transaction, according to a market source.

The CLO sold $248 million of class A senior secured floating-rate notes (Aaa/AAA) at Libor plus 156 bps at the top of the capital stack.

BNP Paribas Securities Corp. was the placement agent.

Prudential Financial Inc. subsidiary PGIM Inc. will manage the CLO.

The notes are due July 15, 2027.

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

Prudential pulled the original offering sized at $507.75 million from marketing in February.

Prudential Investment Management, the primary asset management business of Newark, N.J.-based Prudential Financial, was in the U.S. primary market in 2015 with four CLO deals.

Highbridge places CLO

Highbridge Principal Strategies raised $502.55 million in its new CLO offering, according to a market source.

HPS Loan Management 9-2016 Ltd./HPS Loan Management 9-2016 LLC sold $310 million of class A-1 senior secured floating-rate notes at Libor plus 156 bps in the AAA-rated tranche.

Citigroup Global Markets Inc. was the placement agent.

The notes are due May 15, 2028.

The CLO is backed by broadly syndicated senior secured loans.

Highbridge has priced two U.S. CLO transactions year to date.

The subsidiary of Highbridge Capital Management, LLC is based in New York City.

Trinitas offers Trinitas CLO

Triumph Capital Advisors, LLC affiliate Trinitas Capital Management plans to price $406.64 million of notes due 2028 in the Trinitas CLO IV Ltd./Trinitas CLO IV LLC, according to a market source.

The offering includes $2 million of class X floating-rate notes (AAA); $258 million of class A floating-rate notes (AAA); $42 million of class B floating-rate notes (AA); $28 million of class C deferrable floating-rate notes (A); $15 million of class D-1 deferrable floating-rate notes (BBB); $5 million of class D-2 deferrable floating-rate notes (BBB); $20 million of class E deferrable floating-rate notes (BB-) and $36.64 million of subordinated notes.

Wells Fargo Securities, LLC is the placement agent.

Trinitas Capital Management will manage the CLO. Triumph Capital will provide initial staff and services.

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

Triumph Capital priced one new CLO offering and refinanced a vintage CLO deal in 2015.

The investment management firm is a subsidiary of Dallas-based Triumph Bancorp, Inc.

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