GC Investment sells middle-market CLO; CDO primary market active; CBO/CDO/CLO paper softens

By Cristal Cody

Tupelo, Miss., July 16 – In addition to broadly syndicated CLO issuance, the primary market is seeing other securitized transactions print amid the coronavirus pandemic climate.

GC Investment Management LLC priced a $595.78 million middle-market CLO.

EFJ Capital LLC brought a $273.4 million static CDO to the primary market.

In addition, Hildene Structured Advisors, LLC priced a $175.88 million static CDO.

Middle-market CLO volume totals more than $3 billion year to date, according to market sources.

In other action, CBO/CDO/CLO paper softened across the capital stack in secondary trading.

High-grade CBO/CDO/CLO paper declined to an average of 93.2 on Wednesday from 96.8 on Tuesday and Monday, according to Trace data.

Trading volume included $310.03 million of investment-grade issues, down from $544.34 million on Tuesday and $322.84 million on Monday.

Lower-rated issues softened to 71.3 from an average 80.7 on Tuesday and 73.5 on Monday.

Secondary market volume in non-high-grade securities rose to $229.25 million on Wednesday from $156.1 million on Tuesday and $70.7 million at the start of the week.

GC Investment prices $595.78 million

GC Investment Management priced $595.78 million of notes due July 20, 2032 in the middle-market CLO, a source said.

Golub Capital Partners CLO 49(M) Ltd./Golub Capital Partners CLO 49(M) LLC sold $315 million of class A-1 floating-rate notes at Libor plus 250 basis points at the top of the capital structure.

Wells Fargo Securities, LLC was the placement agent.

The notes are backed primarily by middle-market senior secured corporate loans.

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

Hildene sells $175.88 million CDO

Hildene Structured Advisors priced a $175,875,000 static CDO offering of notes due Feb. 1, 2038, according to a market source.

Hildene TruPS Securitization 2020-3, Ltd. sold $117,125,000 of class A senior secured floating-rate notes at Libor plus 350 bps in the senior tranche.

Jefferies LLC was the placement agent.

The CDO is backed by a portfolio of trust preferred securities, subordinated debt, senior notes and surplus notes issued by U.S. community banks and insurance providers.

Hildene Structured Advisors is a Stamford, Conn.-based distressed debt investment management firm.

EFJ Capital prints $273.4 million

EFJ Capital sold $273.4 million of notes due due April 16, 2040 in its static CDO, according to market sources.

TruPS Financials Note Securitization 2020-1/TruPS Financials Note Securitization 2020-1 LLC priced $169.7 million of 3.5% class A-1 senior secured fixed-to-floating-rate notes (Aa2) at the top of the capital stack.

The rate will reset July 15, 2025 to a floating rate of Libor plus 300 bps.

BofA Securities, Inc. was the placement agent.

EFJ CDO Manager LLC will manage the CLO.

The issue is backed by a portfolio of trust preferred securities, subordinated debt, senior notes and surplus notes issued by U.S. community banks and insurance companies.

EFJ Capital is an Arlington, Va.-based alternative asset manager.

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