Golub offers $900.76 million CLO, firm’s fourth middle-market deal; Ares plans CLO reset

By Cristal Cody

Tupelo, Miss., Nov. 19 – Golub Capital LLC affiliate GC Advisors LLC plans to price $900.76 million of notes in a new middle-market CLO deal, joining several other managers in the space before the year closes.

Golub also closed Friday on its $602.4 million Golub Capital BDC CLO III LLC middle-market deal that priced on Nov. 1. In that offering, the CLO placed the AAA-rated tranche at Libor plus 148 basis points.

Golub Capital has priced one broadly syndicated CLO and three new middle-market CLOs year to date.

More than $12 billion of middle-market CLOs have priced in 2018, while about 15 vintage middle-market CLOs have been refinanced so far this year, according to informed sources.

Other managers offering middle-market CLOs include Guggenheim Partners Investment Management LLC and Barings LLC.

In other activity, Ares CLO Management LLC plans to price a $721.8 million refinancing and reset of a 2016 broadly syndicated CLO deal.

Nearly $140 billion of vintage CLOs have been refinanced year to date, according to market sources.

Golub offers GCIC CLO

GC Advisors plans to price $900,755,000 of notes due Jan. 20, 2031 in the new GCIC CLO II LLC middle-market transaction, according to an informed source.

The deal includes $490 million of class A-1 floating-rate notes (/AAA/AAA); $38.5 million of class A-2 floating-rate notes (/AAA/); $45 million of class B floating-rate notes (/AA/); $95 million of class C deferrable floating-rate notes (/A/); $60 million of class D deferrable floating-rate notes (/BBB-/) and $172,255,000 of subordinated notes.

Wells Fargo Securities LLC is the placement agent.

The deal, backed by middle market senior secured loans, is expected to close Dec. 20.

In 2017, the New York-based company priced two new middle-market CLOs.

Ares to price $721.8 million

Ares CLO Management intends to price $721.8 million of notes in a refinancing and reset of the Ares XL CLO Ltd./Ares XL CLO LLC broadly syndicated transaction, according to a market source.

The offering includes $4.65 million of class X notes; $424.9 million of class A-1-R notes (//AAA); $26.6 million of class A-2-R notes (//AAA); $80.5 million of class A-3-R notes; $37.1 million of class B-R notes; $39.9 million of class C-R notes; $35 million of class D-R notes; $10.15 million of class E-R notes, as well as $63 million of original subordinated notes.

Goldman Sachs & Co. LLC is the refinancing placement agent.

The maturity on the notes will be extended to Jan. 15, 2029.

In the original $707 million offering of notes due Oct. 15, 2027 that were issued Oct. 25, 2016, the CLO sold $424.9 million of class A-1 senior floating-rate notes at Libor plus 143 basis points, $30.1 million of class A-2 senior floating-rate notes at Libor plus 165 bps and $75.6 million of class A-3 senior floating-rate notes at Libor plus 185 bps.

The CLO also placed $37.8 million of class B mezzanine deferrable floating-rate notes at Libor plus 240 bps, $42 million of class C mezzanine deferrable floating-rate notes at Libor plus 370 bps, $33.6 million of class D mezzanine deferrable floating-rate notes at Libor plus 660 bps and $63 million of subordinated notes.

Proceeds from the deal, expected to close Dec. 13, will be used to redeem the original notes.

The CLO manager is a subsidiary of Los Angeles-based alternative asset management firm Ares Management LLC.

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