3i prices upsized $759.8 million CLO; Golub CLO AAAs price tight; Fifth Street preps deal

By Cristal Cody

Tupelo, Miss., Jan. 28 – The CLO primary market woke this week after a slow start to the year, according to market sources.

“We’ve started to see a pickup a little bit this week,” an informed source said. “It’s still kind of light. The ramping side has started, and we’re also starting to see a little pickup in the underlying collateral so that helps as these new deals get formed.”

3i Debt Management U.S. LLC priced an upsized $759.8 million CLO transaction on Wednesday, according to a market source. The CLO placed the AAA notes at Libor plus 160 basis points.

GC Investment Management LLC sold $404.75 million of notes in a Europe-compliant CLO offering, a source said.

The AAA tranche priced on the tight side of recent issuance at Libor plus 140 bps.

Apollo Credit Management (CLO) LLC also brought a $786 million CLO offering via Morgan Stanley & Co., according to a source. Final pricing terms were not available by press time.

Coming up, Fifth Street Management LLC plans to bring a $309.45 million middle-market deal, according to a source.

3i Debt upsizes

3i Debt Management priced $759.8 million of notes due Feb. 15, 2027 in the Jamestown CLO VI Ltd./Jamestown CLO VI Corp. transaction on Wednesday, according to a market source.

The deal was upsized from $610 million.

The CLO sold $410 million of class A-1A floating-rate notes (//AAA) at Libor plus 160 bps at the top of the capital structure.

Citigroup Global Markets Inc. was the placement agent.

3i Debt Management will manage the CLO.

Proceeds from the offering will be used to purchase a portfolio of about $750 million of primarily senior secured leveraged loans.

3i Debt Management priced two U.S. CLO deals in 2014, including the $411 million Jamestown CLO V Ltd./Jamestown CLO V Corp. offering on Nov. 10.

The New York City-based investment manager is a subsidiary of London-based 3i Group plc.

Golub AAAs price tight

GC Investment Management sold $404.75 million of notes due Feb. 15, 2027 in the Golub Capital Partners CLO 22 (B) Ltd./Golub Capital Partners CLO 22 (B) LLC offering, according to a market source.

The CLO priced $256 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Libor plus 140 bps.

J.P. Morgan Securities LLC arranged the transaction.

GC Investment Management is the CLO manager.

The transaction complies with European Union risk retention requirements.

Proceeds from the deal will be used to purchase a portfolio of about $400 million of primarily senior secured leveraged loans.

GC Investment Management, an affiliate of New York-based investment management firm Golub Capital, brought four CLO deals in 2014.

Fifth Street preps CLO

Fifth Street Management plans to price $309.45 million of notes due 2027 in a middle-market broadly syndicated CLO deal, according to a source.

The Fifth Street Senior Loan Fund I, LLC offering includes $172.5 million of class A floating-rate notes (/AAA/); $28 million of class B floating-rate notes; $11 million of class C-1 deferrable floating-rate notes; $12 million of class C-2 deferrable floating-rate notes; $11.75 million of class D-1 deferrable floating-rate notes; $10 million of class D-2 deferrable floating-rate notes; $18 million of class E deferrable floating-rate notes; $12 million of class F deferrable floating-rate notes and $34.2 million of subordinated notes.

Wells Fargo Securities LLC is the placement agent.

Fifth Street Management will manage the CLO.

The transaction is backed primarily by a portfolio of middle-market senior secured loans.

Fifth Street Management is an alternative asset manager based in Greenwich, Conn.

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