GC Advisors prices $539.4 million Golub CLO; Apollo refinances $473 million 2014 CLO notes

By Cristal Cody

Tupelo, Miss., May 11 – GC Advisors LLC tapped the CLO primary market with a new $539.4 transaction.

The CLO manager priced nine tranches of floating-rate and subordinated notes in the deal.

In refinancing activity, Apollo Credit Management (CLO) LLC refinanced $473 million of fixed- and floating-rate notes in five tranches from a vintage 2014 CLO. The deal is Apollo’s second CLO refinancing of the year.

The new issue market has seen more than $21 billion of volume year to date, while about $70 billion of U.S. CLOs have refinanced in 2017, according to market sources.

GC Advisors prices CLO

GC Advisors sold $539.4 of notes due July 26, 2029 in the Golub Capital Partners CLO 19(B)-R, Ltd./Golub Capital Partners CLO 19(B)-R, LLC deal, according to a market source.

The CLO priced the $293 million tranche of class A-1A floating-rate notes at Libor plus 130 basis points.

GreensLedge Capital Markets LLC arranged the offering.

GC Advisors will manage the CLO, which is collateralized primarily by first-lien senior secured loans.

Proceeds will be used to purchase about a $533 million portfolio of mostly first-lien senior secured leveraged loans.

GC Advisors is a Chicago-based investment firm and affiliate of middle market lender Golub Capital.

Apollo refinances

Apollo Credit Management (CLO) refinanced $473 million of notes due Oct. 17, 2026 from the 2014 CLO transaction, according to a market source.

ALM XI Ltd./ALM XI LLC sold $348.75 million of class A-1-R senior secured floating-rate notes at Libor plus 114 bps at the top of the capital structure.

Morgan Stanley & Co. LLC was the refinancing agent.

In the original transaction priced on July 31, 2014, the CLO sold the $348.75 million tranche of class A-1 floating-rate notes at Libor plus 143 bps.

Proceeds from the refinancing were used to redeem the original class A-1, A-2a, A-2B, B and C notes at par on Thursday.

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

Apollo has refinanced two CLOs year to date.

The New York City-based subsidiary of Apollo Global Management, LLC priced two new CLOs and refinanced two vintage CLO transactions in 2016.

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