Golub refinances $754.51 million middle-market CLO; BlueMountain reprices notes

By Cristal Cody

Tupelo, Miss., June 5 – CLO refinancing action remains busy and is expected to continue at a strong pace over the summer, according to market sources.

In recent transactions, GC Investment Management LLC refinanced $754.51 million of notes from a vintage middle-market CLO, while BlueMountain Capital Management LLC repriced $391 million of notes from a 2016 broadly syndicated CLO.

More than $50 billion of broadly syndicated and middle-market CLOs have been refinanced year to date, according to market sources.

Elsewhere, in secondary market activity, Monday’s session ended with $105.9 million of investment-grade CBO/CDO/CLO issues and $57.02 million of lower-rated securities traded, according to Trace.

GC Investment refinances

GC Investment Management refinanced $754.51 million of notes from the vintage Golub Capital Partners CLO 25(M), Ltd./Golub Capital Partners CLO 25(M), LLC middle-market transaction, according to a notice of proposed supplemental indenture and notice of optional redemption by refinancing on Monday.

The CLO priced $422.6 million of class A-R senior secured floating-rate notes at Libor plus 138 basis points in the senior tranche.

Wells Fargo Securities LLC was the refinancing placement agent.

The dates on the maturity, non-call period and reinvestment period are expected to be changed, according to the notice.

The original CLO transaction was issued Aug. 5, 2015.

Proceeds will be used to redeem the original notes.

The CLO manager is an affiliate of New York-based middle market lender Golub Capital.

In 2017, Golub Capital priced two new CLOs.

BlueMountain reprices

BlueMountain Capital Management repriced $391 million of notes due April 20, 2027 in the BlueMountain CLO 2016-1 Ltd./BlueMountain CLO 2016-1 LLC transaction that closed on Monday, according to a market source and a notice of executed supplemental indenture.

The CLO sold $263.5 million of class A-R senior secured floating-rate notes at Libor plus 89 bps at the top of the capital stack.

J.P. Morgan Securities LLC was the refinancing placement agent.

In the original transaction issued May 19, 2016, the CLO sold $263.5 million of class A senior secured floating-rate notes at Libor plus 158 bps.

Proceeds were used to redeem the original notes.

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

BlueMountain Capital Management is based in New York City.

© 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.