GoldenTree prices $553.55 million CLO; Sculptor to refinance 2016 notes; outflows rise

By Cristal Cody

Tupelo, Miss., Nov. 22 – GoldenTree Loan Management LP priced a $553.55 million CLO deal this week in the manager’s third broadly syndicated CLO offering of the year.

In other activity, Sculptor Loan Management LP, formerly known as Och-Ziff Loan Management LP, intends to sell $304 million of notes in a partial refinancing of a vintage 2016 CLO deal.

More than $100 billion of new broadly syndicated CLOs have priced this year, while about $40 billion of vintage CLOs have been refinanced year to date, according to market sources.

Meanwhile, for the past week ended Wednesday, leveraged loan funds saw a jump in outflows to $447 million from $88 million of outflows in the previous week and $366 million of redemptions in the week ending Nov. 6, Fitch Ratings said in a report on Friday.

Year to date, net flows stand at approximately $27 billion of outflows.

“Flows have remained negative for 52 of the past 53 weeks, totaling $40.4 billion of outflows over this period,” Fitch said.

Elsewhere, securitized secondary market volume has been strong over the week.

Thursday’s session included $518.91 million of investment-grade CBO/CDO/CLO issues that traded at an average 99.00 price, according to Trace data. In addition, $215.68 million of non-high-grade paper was traded with an average price of 86.20.

On Wednesday, $371.61 million of high-grade securities were traded at an average 97.30, while $236.23 million of lower-rated issues had an average 86.70 trade price.

Tuesday’s session saw $592.74 million of high-grade CBO/CDO/CLO issues trade flat at an average price of 98.80. Lower-rated trading volume totaled $502.31 million with issues traded at an average 78.10, up from 73.30 on Monday.

At the start of the week, secondary volume included $328.4 million of high-grade CBO/CDO/CLO issues and $201.15 million of lower-rated CBO/CDO/CLO securities.

GoldenTree prices CLO 6

GoldenTree Loan Management priced $553.55 million of notes due Jan. 20, 2033 in the new CLO deal, according to market sources.

GoldenTree Loan Management US CLO 6 Ltd./GoldenTree Loan Management US CLO 6 Inc. sold $352 million of class A senior secured floating-rate notes at Libor plus 134 basis points at the top of the capital structure.

Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and BofA Securities, Inc. were the placement agents.

GoldenTree Loan Management, part of GoldenTree Asset Management, LP, is the CLO manager.

The transaction is backed primarily by broadly syndicated first-lien senior secured loans.

The private investment firm is based in New York City.

Sculptor to price

Sculptor Loan Management plans to price $304 million of notes due January 2029 in a partial refinancing of the OZLM XV, Ltd./OZLM XV LLC transaction, according to a notice of proposed first supplemental indenture on Thursday.

OZLM XV intends to sell $252 million of class A-1-R senior secured floating-rate notes, $40.5 million of class A-2a-R senior secured floating-rate notes and $11.5 million of class A-2b-R senior secured floating-rate notes.

Deutsche Bank Securities, Inc. is the refinancing placement agent.

The original CLO notes were issued Dec. 20, 2016.

New York-based Sculptor changed its name in September. The firm is part of Sculptor Capital Management, Inc.

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