GSO/Blackstone, Apollo, PineBridge and Guggenheim tap CLO primary market; June volume up

By Cristal Cody

Eureka Springs, Ark., June 20 – CLO primary action is picking up in June with new offerings priced by GSO/Blackstone Debt Funds Management LLC, Apollo Credit Management (CLO) LLC, PineBridge Investments LLC and Guggenheim Partners Investment Management LLC.

GSO/Blackstone Debt Funds Management brought a $650.13 million CLO transaction.

Apollo Credit Management (CLO) sold $450.05 million of notes in its offering.

PineBridge Investments tapped the primary market with a $400 million deal.

Guggenheim Partners Investment Management raised $401.45 million in its new CLO.

“Monthly issuance is trending higher as June has already seen 11 U.S. CLOs [totaling $4.8 billion] and four European CLOs [totaling €1.6 billion],” J.P. Morgan Securities, LLC analysts said in a note released on Monday.

GSO/Blackstone prices

GSO/Blackstone Debt Funds Management priced $650.13 million of notes due July 20, 2028 in the Westcott Park CLO, Ltd./Westcott Park CLO LLC transaction, according to a market source.

The CLO sold $413.44 million of class A senior secured floating-rate notes (Aaa//AAA) at par to yield Libor plus 153 basis points in the senior tranche.

Wells Fargo Securities, LLC was the placement agent.

Proceeds will be used to purchase a $640 million portfolio of mostly senior secured leveraged loans.

GSO/Blackstone priced six U.S. CLOs and refinanced one vintage CLO in 2015.

The subsidiary of alternative asset manager GSO Capital Partners LP is based in New York.

Apollo brings $450.05 million

Apollo Credit Management (CLO) sold $450.05 million of notes due July 15, 2027 in the new CLO deal, according to a market source.

ALM XVIII, Ltd. priced $275 million of class A-1 senior secured floating-rate notes at Libor plus 153 bps at the top of the capital stack.

BNP Paribas Securities Corp. arranged the offering.

Apollo has priced two new CLO deals and refinanced one AAA-rated tranche in a vintage 2013 deal year to date.

The New York City-based subsidiary of Apollo Global Management, LLC priced four new CLOs and refinanced two vintage CLOs in 2015.

PineBridge sells CLO

PineBridge Investments priced $400 million of notes due July 15, 2028 in the Galaxy XXII CLO, Ltd./Galaxy CLO XXII LLC offering, according to a market source.

The CLO placed $223 million of class A-1 floating-rate notes at Libor plus 158 bps and $33.4 million of 2.8% class A-2 fixed-rate notes in the senior slices.

Goldman Sachs & Co. was the placement agent.

Proceeds will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.

PineBridge Investments was in the primary market in 2015 with three U.S. CLO transactions and one euro-denominated CLO deal.

The asset management firm is based in New York City.

Guggenheim places CLO

Guggenheim Partners Investment Management priced its $401.45 million CLO transaction via Citigroup Global Markets Inc., a market source said.

The Seven Sticks 2016-1 CLO Ltd. offering sold $256 million of class A-1 floating-rate notes at Libor plus 170 bps and $44.3 million of class A-2 floating-rate notes at Libor plus 230 bps at the top of the capital structure.

Guggenheim is the CLO manager.

The Santa Monica, Calif.-based investment management firm and subsidiary of Guggenheim Partners, LLC priced five CLO transactions in 2015.

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