Primary returns; GC prices middle market CLO; Greywolf joins pipeline; secondary slows

By Cristal Cody

Tupelo, Miss., Nov. 7 – Primary issuance in the CLO market remains strong going into the final months of the year, according to market sources on Friday.

“Primary volume for October had a strong finish, as more than $11 billion was issued in the United States,” Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Jason McNeilis said in a note.

“European CLO primary volume for October was the second-highest month in the post-crisis period at €1.8 billion. We expect the primary calendar to remain active through year-end, as managers focus on building AUM prior to risk retention and underwriters work to clear balance sheet capacity.”

GC Investment Management LLC tapped the market with a $355,823,000 middle-market CLO deal, according to a source on Friday.

Golub Capital Partners CLO 21 (M) Ltd./Golub Capital Partners CLO 21 (M) LLC sold $182.5 million of class A senior secured floating-rate notes at Libor plus 190 basis points at the top of the capital structure.

Wells Fargo Securities LLC arranged the transaction.

Coming up in primary activity, CLO manager Greywolf Capital Management LP plans to price $437.35 million of floating-rate and subordinated notes due 2026, according to a market source.

J.P. Morgan Securities LLC is the placement agent.

Meanwhile, CLO secondary trading has slowed as investors focus on the primary market, according to Wells Fargo.

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