By Cristal Cody
Tupelo, Miss., Aug. 4 – GC Investment Management LLC priced $558.34 million of notes due Aug. 5, 2027 in the Golub Capital Partners CLO 25(M) Ltd./Golub Capital Partners CLO 25(M) LLC transaction, according to a market source.
The CLO priced $269.75 million of class A-1 floating-rate notes at 99.19 with a spread of Libor plus 180 basis points and $30 million of class A-2 floating-rate notes at par with a spread of Libor plus 182 bps. The class A-2 notes step up to Libor plus 217 bps after 24 months from the closing date.
The CLO also sold $48.13 million of class B floating-rate notes at 99.38 with a spread of Libor plus 265 bps; $59.13 million of class C floating-rate notes at 98.77 with a spread of Libor plus 365 bps; $38.5 million of class D floating-rate notes at 96.9858 with a spread of Libor plus 425 bps and $112.83 million of subordinated notes.
Wells Fargo Securities LLC arranged the transaction.
GC Investment Management will manage the CLO.
The CLO is non-callable until Aug. 5, 2017. The reinvestment period ends Aug. 5, 2019.
The transaction is backed primarily by middle-market senior secured loans.
GC Investment Management, an affiliate of New York-based middle market lender Golub Capital BDC, Inc., has priced two CLO transactions in 2015.
| Issuer: | Golub Capital Partners CLO 25(M) Ltd./Golub Capital Partners CLO 25(M) LLC
|
| Amount: | $558.34 million
|
| Maturity: | Aug. 5, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | GC Investment Management LLC
|
| Call feature: | Aug. 5, 2017
|
| Pricing date: | July 27
|
| Settlement date: | Aug. 5
|
|
|
| Class A-1 notes
|
| Amount: | $269.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Price: | 99.19
|
| Ratings: | Moody’s: Aaa (expected)
|
| Standard & Poor’s: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 182 bps for first two years, then Libor plus 217 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa (expected)
|
| Standard & Poor’s: AAA
|
|
|
| Class B notes
|
| Amount: | $48.13 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Price: | 99.38
|
| Rating: | Moody’s: Aa1 (expected)
|
|
|
| Class C notes
|
| Amount: | $59.13 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Price: | 98.77
|
| Rating: | Moody’s: A2 (expected)
|
|
|
| Class D notes
|
| Amount: | $38.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Price: | 96.9858
|
| Rating: | Moody’s: Baa3 (expected)
|
|
|
| Equity
|
| Amount: | $112.83 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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