By Cristal Cody
Tupelo, Miss., Aug. 28 – GSO Capital Partners, LP priced $502 million of notes due July 22, 2030 in the Diamond CLO 2018-1, Ltd./Diamond CLO 2018-1, LLC middle-market collateralized loan obligation transaction, according to market sources.
The CLO sold $277.5 million of class A-1 floating-rate notes at Libor plus 127 basis points; $32.5 million of class A-2 floating-rate notes at Libor plus 150 bps; $30 million of class B floating-rate notes at Libor plus 180 bps; $45 million of class C floating-rate notes at Libor plus 260 bps; $30 million of class D floating-rate notes at Libor plus 370 bps; $33 million of class E floating-rate notes at Libor plus 750 bps with a discount margin of Libor plus 775 bps, and $54 million of subordinated notes.
Wells Fargo Securities LLC was the placement agent.
GSO Capital will manage the CLO.
The CLO has a one-year non-call period and a 1.3-year reinvestment period.
The notes are backed by middle-market and broadly syndicated first-lien senior secured loans.
The deal is GSO Capital’s first middle-market CLO transaction.
GSO Capital Partners is a subsidiary of the Blackstone Group LP.
| Issuer: | Diamond CLO 2018-1, Ltd./Diamond CLO 2018-1, LLC
|
| Amount: | $502 million
|
| Maturity: | July 22, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Middle-market CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | GSO Capital Partners, LP
|
| Call feature: | One year
|
| Pricing date: | Aug. 24
|
| Settlement date: | Sept. 12
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $277.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 127 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $32.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $45 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $33 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 750 bps
|
| Yield: | Libor plus 775 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $54 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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