GoldenTree prices €373.7 million; Benefit Street brings CLO; Fed buys weigh on spreads

By Cristal Cody

Tupelo, Miss., June 22 – GoldenTree Asset Management LP priced €373.7 million of notes in the manager’s first euro CLO offering of the year.

In the dollar-denominated primary market, Benefit Street Partners LLC sold $398.2 million of notes in its first new issue broadly syndicated CLO deal this year.

The manager also was in the market in March with a vintage CLO refinancing transaction.

More than €8 billion of euro-denominated CLOs have priced so far this year, according to market sources.

In the dollar-denominated market, more than $28 billion of broadly syndicated and static CLOs have priced year to date.

The Federal Reserve’s program to purchase corporate bonds weighed on securitized products last week, BofA Securities Inc. analysts said in a research note released on Monday.

“Corporates are a tough act to follow for securitized products and mortgage rates,” the analysts said. “Securitized products credit spreads moved tighter in sympathy – but were a little soft relative to corporates.”

In the secondary market, $1.2 billion of BWIC volume was seen last week, down from $1.6 billion in the prior week, according to the report.

CLO spreads were mostly wider across the capital structure except for B-rated tranches, which ended the week unchanged at the Libor plus 1,550 basis points average, the analysts said.

“CLO AAA spreads widened by 5 bp while AA-BB spreads widened by 10 bp [week over week] despite the positive macro backdrop,” the analysts said. “Even with wider levels, demand was robust.”

AAAs headed out on Friday 5 bps wider on the week at a Libor plus 170 bps average.

BBB spreads softened 10 bps to an average Libor plus 1,085 bps.

In the euro-denominated secondary market, spreads were flat across the capital stack.

AAAs were steady on the week at an average Euribor plus 160 bps, while BBBs were flat at Euribor plus 425 bps.

GoldenTree Euro prints

GoldenTree Asset Management priced €373.7 million of notes due in 2031 in the manager’s first euro CLO offering of 2020, according to market sources.

GoldenTree Loan Management EUR CLO 4 DAC sold €221 million of class A floating-rate notes at Euribor plus 155 bps in the AAA-rated tranche.

Morgan Stanley & Co. International plc was the placement agent.

GoldenTree Loan Management II LP will manage the CLO.

The deal is backed primarily by senior secured leveraged loans and bonds.

GoldenTree Asset Management priced one euro-denominated CLO offering in 2019 and two new euro CLOs in 2018.

The private investment firm is based in New York City.

Benefit Street prices

Benefit Street Partners priced $398.2 million of notes due July 15, 2031 in a new broadly syndicated CLO offering, according to market sources.

Benefit Street Partners CLO XX Ltd./Benefit Street Partners CLO XX LLC sold $240 million of class A-1 floating-rate notes at Libor plus 175 bps at the top of the capital stack.

Natixis Securities Americas LLC was the placement agent.

The CLO has a one-year non-call period and a three-year reinvestment period.

The notes are collateralized mostly by first-lien senior secured loans.

New York City-based Benefit Street Partners is a credit investment subsidiary of Franklin Templeton Investments.

© 2015 Prospect News.
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