GSO/Blackstone brings firm’s fifth U.S. CLO; PineBridge preps deal; Conning to buy Octagon

By Cristal Cody

Tupelo, Miss., Nov. 5 – Details emerged on new CLO issuance from GSO/Blackstone Debt Funds Management LLC, which brought the firm’s fifth new U.S. deal of the year.

GSO/Blackstone Debt Funds Management priced a $435.82 million CLO offering of fixed-rate, floating-rate and subordinated notes and loans.

Year to date, total new CLO broadly syndicated volume is more than $86 billion, according to market sources.

With less than two months to the end of the year, market insiders forecast more than $10 billion of volume remains to be issued in the U.S. broadly syndicated CLO market.

Coming up in the deal pipeline, PineBridge Investments LLC plans to price a $411.2 million CLO.

In other market activity, Hartford, Conn.-based insurer asset manager Conning announced it plans to acquire CLO manager Octagon Credit Investors, LLC.

New York-based Octagon was most recently in the CLO primary market on Sept. 30 with the Octagon Investment Partners 25, Ltd./Octagon Investment Partners 25, LLC transaction. The CLO manager has priced four CLOs year to date.

“Partnering with Conning will not only provide Octagon with additional capital to meet regulatory risk retention requirements and strengthen our position as a leading U.S. CLO manager, but will also help us develop and deliver a broader range of investment solutions to our collective global investor base,” Octagon chief executive officer Andy Gordon, who will remain in the position following the deal, said in a statement.

The acquisition is expected to close in early 2016.

GSO/Blackstone prices

GSO/Blackstone Debt Funds Management priced a $435.82 million CLO transaction via Deutsche Bank Securities Inc., according to a market source.

The Cole Park CLO Ltd./Cole Park CLO LLC vehicle sold $202 million of class A-1 floating-rate notes at Libor plus 150 basis points in the senior tranche.

GSO/Blackstone will manage the CLO, which has a 1.9-year non-call period and a 4.9-year reinvestment period.

The notes are due Oct. 20, 2028.

The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Proceeds from the offering will be used to purchase a portfolio of about $425 million of mostly senior secured leveraged loans.

GSO/Blackstone has been in the primary market with five new U.S. CLO deals and one refinancing transaction year to date.

The New York City-based subsidiary of alternative asset manager GSO Capital Partners LP placed five U.S. CLO transactions in 2014.

PineBridge in pipeline

PineBridge Investments plans to price $411.2 million of notes due Jan. 15, 2028 in the Galaxy XXI CLO Ltd./Galaxy XXI CLO LLC offering, according to a market source.

The transaction includes $259 million of class A floating-rate notes (//AAA); $45 million of class B floating-rate notes; $25 million of class C floating-rate notes; $21 million of class D floating-rate notes; $9 million of class E-1 floating-rate notes; $9 million of class E-2 floating-rate notes, $8 million of class F floating-rate notes and $35.2 million of subordinated notes.

Barclays is the placement agent.

PineBridge Investments will manage the CLO.

The CLO has a 2.1-year non-call period and 4.1-year reinvestment period.

The deal is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.

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

PineBridge Investments has priced two U.S. CLOs and one euro-denominated CLO year to date.

The New York City-based asset management firm brought to market two CLO transactions in 2014.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.