Golub Capital to price $408.92 million notes in refinancing, reset of 2015 CLO

By Cristal Cody

Tupelo, Miss., March 22 – Golub Capital plans to price $408.92 million of notes in a refinancing and reset of the Golub Capital Partners CLO 26(B)-R Ltd./Golub Capital Partners CLO 26(B)-R LLC transaction, according to a market source.

The deal is expected to include $236 million of class A-1-R floating-rate notes (//AAA); $20 million of class A-2-R floating-rate notes; $42 million of class B-R floating-rate notes; $21.25 million of class C-R floating-rate notes; $26.25 million of class D-R floating-rate notes; $22.5 million of class E-R floating-rate notes and $40.92 million of subordinated notes.

Wells Fargo Securities LLC is the refinancing placement agent.

Golub affiliate OPAL BSL LLC will resume the management of the broadly syndicated CLO from company affiliate GC Investment Management LLC, which priced a middle-market CLO earlier in the year.

The maturity on the notes will be extended to April 20, 2031 from the original Nov. 5, 2027 maturity.

The CLO will have a two-year non-call period and a five-year reinvestment period.

In the original $407.55 million transaction that was issued Nov. 5, 2015, the CLO sold $256 million of class A floating-rate notes at Libor plus 165 bps; $42.5 million of class B floating-rate notes at Libor plus 240 bps; $20.6 million of class C floating-rate notes at Libor plus 340 bps; $26.9 million of class D floating-rate notes at Libor plus 380 bps; $22.2 million of class E floating-rate notes at Libor plus 540 bps and $39.35 million of subordinated notes.

Proceeds will be used to redeem the original notes on April 10.

In 2017, Golub Capital priced two new CLOs.

GC Investment Management is a Chicago-based affiliate of middle market lender Golub Capital.

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