Guggenheim, Golub bring CLO deals; middle-market volume at post-financial crisis high

By Cristal Cody

Tupelo, Miss., Dec. 18 – CLO middle-market volume is ending the year on a new post-financial crisis high following two more deals in the primary market, according to informed sources.

Guggenheim Partners Investment Management LLC closed Monday on a new $402.5 million middle-market CLO in its first new offering of 2018. Guggenheim was in the primary market at the start of the year with a $776.4 million refinancing of a vintage 2015 broadly syndicated CLO.

Also in the middle-market space, Golub Capital LLC affiliate GC Advisors LLC priced $908.2 million of notes in its fourth middle-market transaction of the year.

In addition to the middle-market deals, Golub Capital also has priced one broadly syndicated CLO in 2018.

Crossover issuance between broadly syndicated and middle-market CLOs has become popular this year, according to a Wells Fargo Securities LLC analysts’ note.

Eleven of the 17 managers that have issued middle-market CLOs year to date also issue or have affiliates with broadly syndicated CLOs, the note said.

By the end of November, middle-market volume totaled $15.7 billion from 27 deals, a new issuance high since the financial crisis and better than the $13.75 billion of CLOs priced in 24 transactions in 2017, the Wells Fargo analysts said.

Middle-market CLO deal volume in 2019 is expected to hit the $15 billion area, according to the note.

Guggenheim brings deal

Guggenheim Partners Investment Management sold $402.5 million of notes due Jan. 15, 2031 in the middle-market transaction that closed on Monday, a source said.

Guggenheim MM CLO 2018-1 Ltd./Guggenheim MM CLO 2018-1 LLC sold $207.2 million of class A-1 floating-rate notes at Libor plus 153 basis points in the senior tranche.

Natixis Securities Americas LLC was the placement agent.

The CLO is collateralized by middle-market senior secured loans.

Guggenheim Partners Investment Management is an asset management firm based in New York and Chicago.

Golub raises $908.2 million

GC Advisors priced $908,195,000 of notes due Jan. 20, 2031 in the GCIC CLO II LLC middle-market offering, according to a market source.

The CLO sold $490 million of class A-1 floating-rate notes at Libor plus 148 bps at the top of the capital stack.

Wells Fargo Securities was the placement agent.

The deal is backed by middle market senior secured loans.

Golub Capital is a New York-based middle market lender.

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