GC Investment sells $407.83 million; Golub affiliate eyes broadly syndicated CLO

By Cristal Cody

Tupelo, Miss., Dec. 10 – Middle-market supply increased with a new transaction from GC Investment Management LLC.

GC Investment Management, an affiliate of Golub Capital, priced $407.83 million of notes in the manager’s fourth middle-market CLO offering of the year.

Meanwhile, Golub affiliate OPAL BSL LLC plans to price $406.75 million of notes in a new broadly syndicated CLO.

CLO managers have sold about $8 billion of middle-market CLOs year to date, while more than $78 billion of dollar-denominated CLOs and over €20 billion of euro-denominated broadly syndicated CLOs have priced so far, according to market sources.

Non-high-grade notes improve

In the secondary market, volume declined across the capital structure on Wednesday, Trace data shows.

During the prior session, $497.74 million of investment-grade CBO/CDO/CLO notes softened to an average price of 98.90.

On Tuesday, $500.01 million of investment-grade notes traded flat at an average price of 99.10, up from $386.37 million of volume on Monday.

In non-high-grade CBO/CDO/CLO volume, $139.37 million of issues improved Wednesday to an 87.90 average price.

Lower-rated secondary volume totaled $393.89 million on Tuesday at an 82.10 average price, while $257.45 million of non-high-grade CBO/CDO/CLO issues averaged 78.40 on Monday.

Golub 2020-2 CLO prints

GC Investment Management priced $407.83 million of notes due Feb. 5, 2030 in the middle-market CLO, according to market sources.

Golub Capital Partners TALF 2020-2, LP/Golub Capital Partners TALF 2020-2, LLC sold $247.5 million of class A floating-rate notes at Libor plus 185 basis points in the AAA-rated tranche.

SG Americas Securities LLC was the placement agent.

The notes are backed primarily by a static portfolio of middle-market senior secured corporate loans.

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

OPAL offers $406.75 million

OPAL BSL plans to price $406.75 million of notes due Jan. 20, 2034 in the broadly syndicated CLO offering, according to a market source.

The Golub Capital Partners CLO 52(B) Ltd./Golub Capital Partners CLO 52(B) LLC offering includes $240 million of class A-1 floating-rate notes (//AAA), $10 million of class A-2 floating-rate notes (//AAA), $54 million of class B floating-rate notes, $24 million of class C floating-rate notes, $20 million of class D floating-rate notes, $14 million of class E floating-rate notes and $44.75 million of subordinated notes.

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

The notes are backed primarily by backed by broadly syndicated first-lien senior secured loans.

The transaction is expected to close Dec. 23.

OPAL is an affiliate of New York-based middle market lender Golub Capital.

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