Chicago Fundamental Investment, GSO/Blackstone price; BlueMountain refinances CLO

By Cristal Cody

Tupelo, Miss., July 2 – Two CLO issuers tapped the primary market on Friday, and supply is expected to remain strong in July.

Chicago Fundamental Investment Partners, LLC sold $428 million of notes in the firm’s first deal of the year.

GSO/Blackstone Debt Funds Management LLC priced an upsized $560.8 million of notes in a CLO transaction on Friday.

In new refinancing activity, BlueMountain Capital Management LLC repriced $415.3 million of notes from a 2015 CLO.

Deal volume is expected to ramp up in July and could impact CLO spreads, according to market sources.

Supply pressures “should weigh on CLOs in July, creating potential for CLO spreads to lag spread tightening elsewhere,” BofA Merrill Lynch analysts said in a note released on Monday. “In CLOs, the AAA-BB spread hit a low of 372 [basis points] in late January and has since widened out to 490 bps; with heavy issuance expected for July, we could see further near term widening of this spread.”

CFIP CLO 2018-1 prices

Chicago Fundamental Investment Partners sold $428 million of notes due July 18, 2031 in the new CFIP CLO 2018-1, Ltd./CFIP CLO 2018-1, LLC transaction, according to a market source.

The CLO priced the $273 million of class A floating-rate notes at Libor plus 115 bps.

Wells Fargo Securities LLC was the placement agent.

Chicago Fundamental Investment Partners priced one new CLO and refinanced one vintage CLO in 2017.

The asset management firm is based in Chicago.

GSO/Blackstone upsizes

GSO/Blackstone Debt Funds Management priced $560.8 million of notes in the Fillmore Park CLO Ltd./Fillmore Park CLO LLC transaction, according to market sources.

The deal was upsized from an expected $509.8 million offering.

GreensLedge Capital Markets LLC and Wells Fargo were the placement agents.

The notes are due July 15, 2030.

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

BlueMountain refinances

BlueMountain Capital Management repriced $415,375,000 of notes due July 18, 2027 in the BlueMountain CLO 2015-2 Ltd./BlueMountain CLO 2015-2 LLC transaction that closed Monday, according to a market source and a notice of proposed supplemental indenture.

The CLO sold $311,375 of class A-1-R senior secured floating-rate notes at Libor plus 93 bps in the senior tranche.

J.P. Morgan Securities LLC was the refinancing placement agent.

In the original $409.1 million transaction issued July 1, 2015, the CLO sold $211.38 million of the class A-1 senior secured floating-rate notes at Libor plus 143 bps.

BlueMountain Capital Management is based in New York City.

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