Cairn issues €329.1 million CLO; Golub wraps; high-grade secondary supply climbs

By Cristal Cody

Tupelo, Miss., Aug. 26 – Cairn Loan Investments LLP closed Wednesday on a new €329.1 million euro-denominated CLO in the manager’s first offering since 2019.

Also on Wednesday, Golub Capital subsidiary GC Advisors LLC settled its previously reported $264.36 million Golub Capital BDC CLO 4 LLC middle-market transaction.

The CLO priced the senior tranche at Libor plus 235 basis points.

More than €13 billion of euro-denominated CLOs have priced year to date, while dollar-denominated broadly syndicated CLO supply totals about $45 billion year to date, according to market sources.

About $5 billion of new middle-market CLOs have priced so far this year.

Elsewhere, secondary market supply was elevated on Tuesday with $715.85 billion of high-grade CBO/CDO/CLO issues and $296.95 million of lower-rated tranches traded, according to Trace data.

Volume was up from $247.29 million of investment-grade notes and $59.99 million of lower-rated paper traded on Monday.

Cairn Loan Investments sold €329.1 million of notes due April 15, 2033 in the CLO, according to market sources.

Cairn CLO XII DAC priced €188 million of the class A floating-rate notes at Euribor plus 151 bps.

Cairn Loan Investments II LLP will manage the CLO.

The transaction is backed primarily by broadly syndicated senior secured loans and senior secured bonds.

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