CVC brings $509.25 million CLO; GC on tap; primary ‘sluggish’; issuance forecasts strong

By Cristal Cody

Tupelo, Miss., Jan. 23 – CVC Credit Partners, LLC placed the AAA tranche of notes in the year’s first CLO deal at Libor plus 155 basis points, according to a market source on Friday.

The firm priced a total of $509.25 million of notes in the transaction.

GC Investment Management LLC joined the pipeline with a $404.75 CLO offering, according to a market source.

While the deal calendar is starting to firm, “CLO managers continue to face a sluggish primary market, which we believe is largely driven by a drop in CLO equity demand,” Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Jason McNeilis said in a note on Friday.

Wells Fargo maintained its U.S. CLO forecast at $90 billion for the year.

CVC brings year’s first deal

CVC Credit Partners brought $509.25 million of notes due Jan. 16, 2027 in the CLO offering via Credit Suisse Securities (USA) LLC, according to a market source.

Apidos CLO XX/Apidos CLO XX LLC priced $320 million of class A-1 senior secured floating-rate notes at Libor plus 155 bps.

The CLO also sold $9 million of class E deferrable floating-rate notes at Libor plus 655 bps at the bottom of the capital stack.

New York City-based CVC Credit Partners, a subsidiary of London-based CVC Capital Partners Ltd., brought three CLO deals in 2014.

GC Investment preps deal

GC Investment Management plans to price $404.75 million of notes due 2027 in a middle market CLO transaction, a source said.

The Golub Capital Partners CLO 22 (B) Ltd./Golub Capital Partners CLO 22 (B) LLC offering includes $256 million of class A-1 floating-rate notes (//AAA); $43.9 million of class A-2 floating-rate notes; $20.1 million of class B floating-rate notes; $26 million of class C floating-rate notes; $22 million of class D floating-rate notes and $36.75 of subordinated notes.

J.P. Morgan Securities LLC is the deal arranger.

GC Investment Management, an affiliate of New York-based middle market lender Golub Capital, priced four CLO transactions in 2014.

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