CVC prices $409 million; Golub sells middle-market CLO; Deutsche ups 2016 CLO forecast

By Cristal Cody

Eureka Springs, Ark., July 27 – CLO deal action remains strong in July with more than $5 billion priced in new and refinanced transactions month to date, including a new offering from CVC Credit Partners, LLC, according to market sources and Prospect News data.

CVC Credit Partners priced a $409 million CLO in the firm’s first U.S. deal of the year.

In the middle-market CLO space, GC Advisors LLC sold $410 million of notes due Aug. 8, 2028 in the Golub Capital Investment Corp. CLO 2016(M) LLC transaction via Wells Fargo Securities LLC.

The CLO manager, managed by New York-based middle market lender Golub Capital, priced $220 million of class A floating-rate notes (/AAA/) at a discount margin of Libor plus 215 basis points at the top of the capital structure, according to a market source. Final pricing details were not available by press time.

More than $32 billion of CLOs have priced year to date, according to Prospect News data.

The deal pace has been steady since spring, prompting Deutsche Bank Securities Inc. to raise its 2016 volume forecast to $60 billion.

“Given the improved conditions and increased issuance in the first half we are now raising the projection to $60 billion. With $26 billion issued in the first half of the year this would mean an average monthly issuance of just under $6 billion,” Bjarni Torfason, a Deutsche Bank Securities Inc. analyst, said in a note on Wednesday.

© 2015 Prospect News.
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