Golub prices $602.4 million CLO in firm’s third deal; Insight reprices Cutwater 2015-I

By Cristal Cody

Tupelo, Miss., Nov. 1 – Middle-market CLO volume got a boost on Thursday with a new $602.4 million deal from Golub Capital affiliate Golub Capital BDC, Inc.

The transaction is Golub’s third middle-market CLO offering of the year.

Middle-market supply year to date totals more than $11 billion, compared to the $14.25 billion of middle-market CLO issuance in all of 2017, according to a BofA Merrill Lynch report.

In the broadly syndicated CLO market, Insight North America LLC refinanced $437.15 million of notes from a vintage 2015 CLO.

CLO managers have refinanced more than $130 billion of CLOs this year.

Golub BDC CLO III prints

Golub Capital BDC priced $602.4 million of notes due in January 2031 in the Golub Capital BDC CLO III LLC transaction, according to a news release on Thursday.

The CLO priced $327 million of class A floating-rate notes at par to yield Libor plus 148 basis points at the top of the capital stack.

The company said it will retain the class C-2 notes, class D notes and subordinated notes through a consolidated subsidiary.

The CLO manager is an affiliate of middle market lender Golub Capital.

Golub Capital has priced one broadly syndicated CLO and three new middle-market CLOs year to date.

In 2017, the New York-based company priced two new middle-market CLOs.

Insight prices CLO

Insight North America priced $437.15 million of notes in a refinancing of a vintage 2015 deal, according to a market source and a notice of executed supplemental indenture and executed amendment to income note agency agreement on Wednesday.

Cutwater 2015-I, Ltd./Cutwater 2015-I, LLC sold $292.5 million of class A-R senior secured floating-rate notes at Libor plus 122 bps in the senior tranche.

RBC Capital Markets, LLC was the refinancing placement agent.

Insight North America is the CLO manager successor since the merger with previous CLO manager Cutwater Investor Services Corp.

The maturity on the notes was extended to Jan. 15, 2029 to July 15, 2027.

In the original $462.1 million Cutwater 2015-I deal issued June 3, 2015, the CLO sold $200 million of the class A-1 senior secured floating-rate notes at Libor plus 161 bps.

Proceeds were used to redeem the original notes.

The offering is collateralized primarily by broadly syndicated senior secured corporate loans.

Cutwater is an investment management firm based in New York City.

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