GoldenTree wraps upsized $503.3 million CLO offering; Canyon CLO Advisors prices

By Cristal Cody

Tupelo, Miss., May 11 – In CLO primary action, GoldenTree Loan Management LP closed on an upsized $503.3 million CLO offering in its first new issue offering of the year.

Since the pandemic’s impact in March, new CLOs are pricing with short non-call and reinvestment periods.

GoldenTree’s CLO has a one-year non-call period and a one-year reinvestment period.

In the manager’s last new offering issued on Dec. 19, the GoldenTree Loan Management US CLO 6 Ltd./GoldenTree Loan Management US CLO 6 Inc. deal had a two-year non-call period and a five-year reinvestment period.

Canyon CLO Advisors LLC also closed on a new $436.5 million CLO offering with a one-year non-call period and a short six-month reinvestment period.

Primary action remains thin with a few deals getting done since the pandemic began, a market source said.

New issue spreads have moved out since March but are beginning to improve, sources report.

GoldenTree priced the AAA-rated tranche in the new offering at Libor plus 190 basis points.

The GoldenTree 6 CLO placed the AAA notes last year at Libor plus 134 bps.

In the secondary market, BWIC volume totaled $629 million for the week ended Friday, down from $779 million in the prior week, BofA Securities, Inc. analysts said in a note released Monday.

Investment-grade tranches tightened, while lower-rated mezzanine notes were flat on the week, according to the report.

AAA tranches firmed by 10 bps week over week to the Libor plus 200 bps average area, while AA-BBB spreads came in about 40 bps to 55 bps on the week.

BBB tranches improved 40 bps week over week to the Libor plus 675 bps area on average.

“Investors continue to prefer top-tiered cleaner portfolios as downgrades continue, increasing the price dispersion between top-tiered and lower-tiered portfolios,” the BofA analysts said.

GoldenTree US CLO 7 prints

GoldenTree Loan Management closed on a new $503.3 million CLO offering, upsized from $453.3 million, according to market sources and a news release.

GoldenTree Loan Management US CLO 7 Ltd./GoldenTree Loan Management US CLO 7 Inc. sold $297.5 million of class A floating-rate notes (AAA) at Libor plus 190 bps in the senior tranche.

Morgan Stanley & Co. LLC was the structuring lead placement agent. BofA Securities, Inc. and Wells Fargo Securities LLC were the co-lead placement agents.

The notes are due April 20, 2031.

The transaction is backed primarily by a $464 million portfolio of broadly syndicated first-lien senior secured loans.

The CLO manager, part of New York City-based private investment firm GoldenTree Asset Management, LP, priced three new CLOs in 2019.

Canyon CLO prices

Canyon CLO Advisors closed on a new $436.5 million CLO offering of notes due July 15, 2028, according to market sources.

Canyon CLO 2020-1, Ltd. sold $240 million of class A floating-rate notes at Libor plus 192 bps in the AAA-rated tranche.

BofA Securities was the placement agent.

The transaction is collateralized primarily by first-lien senior secured loans.

Canyon CLO Advisors is a Los Angeles-based subsidiary of alternative asset manager Canyon Capital Advisors LLC.

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