Golub resets middle-market CLO; reissue volume light; mezzanine notes firm in secondary

By Cristal Cody

Tupelo, Miss., March 4 – CLO market action waned last week with market participants out at an industry conference, but the market has a strong pipeline of transactions in the works, according to sources on Monday.

GC Investment Management LLC priced a $399.5 million reissue and reset of a vintage 2017 middle-market CLO.

Broadly syndicated primary and secondary market activity moderated with three new issues and $420 million of BWIC volume in the secondary market, according to a BofA Merrill Lynch analysts’ note released on Monday.

“Primary levels, especially at the senior part of the stack, remain consistent with what we’ve been seeing over the past of couple of weeks,” the analysts said.

In its deal, GC Investment Management priced a $399.5 million reissue and reset of the Golub Capital Partners CLO 34(M) Ltd./Golub Capital Partners CLO 34(M) LLC middle-market transaction, according to a market source and a notice of optional redemption by refinancing and proposed supplemental indenture.

The CLO sold $195 million of class A-R floating-rate notes at Libor plus 170 bps, $50 million of class A-R loans at Libor plus 170 bps and $16 million of 4.26% class A-R-F fixed-rate notes at the top of the capital structure.

Natixis Securities America LLC arranged the offering.

The maturity date was extended to March 14, 2031.

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