CLO primary slows; GSO/Blackstone, Ares Management, Benefit Street Partners bring deals

By Cristal Cody

Tupelo, Miss., May 21 - Issuance in the U.S. CLO primary market is staying fairly light over the short holiday week, according to market sources on Wednesday.

Details emerged on new CLO transactions brought by GSO/Blackstone Debt Funds Management LLC, Ares Management LLC and Benefit Street Partners LLC.

GSO/Blackstone Debt Funds Management priced the $717.4 million Seneca Park CLO Ltd./Seneca Park CLO LLC deal and placed the AAA-rated tranche at Libor plus 148 basis points, according to an informed source.

Benefit Street Partners brought the AAA-rated tranche in the $512.27 million Benefit Street Partners IV, Ltd. deal 1 bp wider at Libor plus 149 bps, according to an informed source.

Ares Management sold a $360.76 million 10-year CLO deal that features a one-year non-call period and no reinvestment period, according to an informed source.

GSO/Blackstone price CLO

GSO/Blackstone Debt Funds Management sold $717.4 million of notes due 2026 in the Seneca Park CLO offering, according to an informed source.

The CLO priced $429.75 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 148 bps; $64.5 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 195 bps; $25 million of 4.35% class B-2 senior secured fixed-rate notes (Aa2); $42 million of class C secured deferrable floating-rate notes (A2) at Libor plus 290 bps; $43.75 million of class D secured deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $40.5 million of class E secured deferrable floating-rate notes (Ba3) at Libor plus 470 bps and $8 million of class F secured deferrable floating-rate notes (B2) at Libor plus 550 bps.

The deal included $63.9 million of subordinated notes in the equity tranche.

Credit Suisse Securities (USA) LLC was the placement agent.

GSO/Blackstone Debt Funds Management will manage the CLO, which is backed primarily by first-lien senior secured loans.

The CLO has a two-year non-call period and a four-year reinvestment period.

Proceeds from the deal will be used to purchase a $700 million portfolio of primarily senior secured leveraged loans.

GSO/Blackstone was last in the market on April 3 when it priced the $510.32 million Pinnacle Park CLO Ltd./Pinnacle Park CLO LLC transaction.

The New York City-based subsidiary of alternative asset manager GSO Capital Partners LP brought two U.S. CLO deals in 2013.

Benefit Street on tap

Benefit Street Partners sold $512.27 million of notes in the CLO deal via Deutsche Bank Securities Inc., according to an informed source.

Benefit Street Partners IV priced $275 million of class A-1A floating-rate notes at Libor plus 149 bps; $30 million of 3.61% class A-1B fixed-rate notes; $40 million of class A-2A floating-rate notes at Libor plus 205 bps; $25 million of 4.26% class A-2B fixed-rate notes; $41 million of class B floating-rate notes at Libor plus 280 bps; $27 million of class C floating-rate notes at Libor plus 350 bps; $22.75 million of class D floating-rate notes at Libor plus 480 bps and $51.52 million of subordinated notes.

Benefit Street Partners will manage the CLO.

The New York City-based credit investment arm of Providence Equity Partners LLC brought two CLO deals in 2013.

Ares prices 10-year CLO

Ares Management priced $360.76 million of 10-year notes in a CLO offering, according to an informed source.

The Ares XXX CLO Ltd. sold $240 million of class A floating-rate notes at Libor plus 85 bps; $33 million of class B floating-rate notes at Libor plus 145 bps; $17 million of class C floating-rate notes at Libor plus 220 bps; $14 million of class D floating-rate notes at Libor plus 285 bps; $20.5 million of class E floating-rate notes at Libor plus 420 bps and $36.26 million of subordinated notes.

Deutsche Bank Securities Inc. was the placement agent.

Ares Management will manage the CLO.

The CLO has a one-year non-call period and no reinvestment period.

Ares Management is a Los Angeles-based alternative asset management firm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.