Aegon prices $510.5 million; BlackRock sells €413.5 million CLO; GC Advisors refinances

By Cristal Cody

Tupelo, Miss., March 26 – New CLO primary activity includes deals in the U.S. and European markets.

Aegon USA Investment Management LLC priced $510.5 million of notes in its second new CLO of the year.

BlackRock Investment Management (UK) Ltd. sold €413.5 million of notes due July 16, 2031 in a new euro-denominated CLO. The manager also has refinanced a vintage European CLO in 2018.

In the refinancing space, GC Advisors LLC repriced $283.5 million of notes from a 2014 CLO.

Stronger refinancing action is expected after April 2 if no appeals are filed against the U.S. Court of Appeals for the District of Columbia’s ruling in February, according to market sources.

The ruling removes the risk retention requirement that CLO managers retain 5% of a CLO deal.

“We hear that certain upcoming refinancing and reset transactions are not risk retention compliant but include provisions to upsize the deal with risk retention capital should the government in fact appeal on or before March 26,” BofA Merrill Lynch analysts said in a note released on Monday.

More than $25 billion of U.S. dollar-denominated CLOs and more than €6 billion of euro-denominated CLOs have priced year to date, in addition to about $26 billion of U.S. refinancing volume and about €3 billion of European refinancing issuance, according to the BofA Merrill Lynch note.

Aegon brings Cedar Funding IX

Aegon USA Investment Management priced $510.5 million of notes due April 2031 in the Cedar Funding IX CLO Ltd./Cedar Funding IX CLO LLC transaction, according to a market source.

The CLO sold $297 million of class A-1 floating-rate notes at Libor plus 98 basis points in the senior tranche.

Citigroup Global Markets Inc. arranged the transaction.

Aegon has priced two new CLOs year to date.

The Cedar Rapids, Iowa-based firm is part of the Hague, Netherlands-based Aegon Group.

BlackRock prices CLO V

BlackRock Investment Management (UK) priced €413.5 million of notes due July 16, 2031 in the new BlackRock European CLO V DAC transaction, according to market sources.

The CLO sold €216 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Euribor plus 72 bps at the top of the capital structure.

BofA Merrill Lynch was the placement agent.

BlackRock Investment Management (UK) has priced one new euro-denominated CLO and refinanced a vintage European CLO year to date.

The investment management firm is a London-based subsidiary of BlackRock, Inc.

Golub CLO refinances

GC Advisors refinanced $283.5 million of notes due April 25, 2026 from the vintage Golub Capital Partners BDC CLO 2014 LLC middle-market transaction, according to a market source and a notice of executed supplemental indenture on Friday.

The CLO priced $191 million of class A-1-R senior secured floating-rate notes at Libor plus 95 bps in the senior tranche.

Wells Fargo Securities LLC was the refinancing placement agent.

In the original $401.8 million CLO transaction that priced May 14, 2014, the CLO sold $191 million of the class A-1 senior secured floating-rate notes at par to yield Libor plus 175 bps.

Proceeds were used to redeem the original class A-1, A-2, B and C notes on Friday.

The CLO manager is an affiliate of New York-based middle market lender Golub Capital.

In 2017, Golub Capital priced two new CLOs.

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