TPG RE Finance prices second CLO; GC Investment reprices CLO; GSO/Blackstone refinances

By Cristal Cody

Tupelo, Miss., Nov. 29 – TPG RE Finance Trust, Inc. closed Thursday on a new $1 billion commercial real estate CLO in its second transaction of the year.

The CLO placed $795.1 million of investment-grade bonds with third party institutional investors.

“Our second CRE CLO issued this year further contributes to the diversification of our financing sources, as well as our objective of obtaining matched-term funding,” Greta Guggenheim, chief executive officer of TPG RE Finance Trust, said in a news release. “This CRE CLO has enabled us to recycle financings in our current credit facilities and increases our return on equity.”

In other activity, GC Investment Management LLC refinanced $487.15 million of notes from a 2016 middle-market CLO.

GSO/Blackstone Debt Funds Management LLC also refinanced $154 million of notes from a 2016 broadly syndicated CLO.

TPG brings second deal

TPG RE Finance Trust closed on a new $1 billion commercial real estate CLO transaction, according to a market source and a news release on Thursday.

TRTX 2018-FL2 Issuer, Ltd./TRTX 2018-FL2 Issuer, LLC priced with a weighted average interest rate of Libor plus 145 basis points before transaction costs.

The CLO sold $505.1 million of the class A floating-rate notes at Libor plus 113 bps.

Goldman Sachs & Co., LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC were the bookrunners.

TPG RE Finance Trust Management, LP will manage the CRE CLO.

The notes are due Nov. 17, 2037.

Proceeds will be used to retire borrowings under certain secured credit facilities and to fund new first mortgage loan investments.

The CLO is collateralized by 25 existing TRTX first mortgage loan investments, which included 23 pari passu participation interests and two whole loans.

TPG RE Finance Trust is a San Francisco-based commercial real estate finance company. The firm is externally managed by TPG RE Finance Trust Management, LP, a part of TPG Real Estate, which is the real estate investment platform of alternative investment firm TPG Global, LLC.

GC Investment refinances

GC Investment Management refinanced $487.15 million of notes due Nov. 21, 2028 from the two-part 2016 middle-market Golub Capital Partners CLO 33 Ltd. deal, according to an informed source and a notice of revised proposed supplemental indenture on Wednesday.

The CLO priced the $361.15 million of class A-R floating-rate notes (/A/) at Libor plus 170 bps. GreensLedge Capital Markets LLC was the placement agent.

GC Investment Management will continue to manage the CLO.

The CLO has a one-year non-call period and a two-year reinvestment period.

In the original $410.9 million transaction issued Nov. 21, 2016, the CLO priced $305 million of class A floating-rate notes at Libor plus 248 bps and $105.9 million of subordinated notes.

Proceeds will be used to redeem the original notes.

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

GC Investment Management is an affiliate of New York-based middle market lender Golub Capital.

GSO/Blackstone reprints

GSO/Blackstone Debt Funds Management refinanced $154 million of notes due Oct. 20, 2029 from the 2016 vintage Burnham Park CLO Ltd./Burnham Park CLO LLC deal, according to a notice of executed second supplemental indenture on Thursday.

Burnham Park CLO priced $63.25 million of class B-R senior secured floating-rate notes at Libor plus 150 bps at the top of the structure.

Wells Fargo Securities, LLC was the refinancing placement agent.

In the original offering issued Oct. 26, 2016 the CLO priced $63.25 million of class B floating-rate notes at Libor plus 180 bps.

Proceeds were used to redeem the original notes.

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

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

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