GSO/Blackstone prices $615.55 million; KKR plans first deal of year; CLO refinancings rise

By Cristal Cody

Tupelo, Miss., Aug. 6 – GSO/Blackstone Debt Funds Management LLC raised $615.55 million in a new collateralized loan obligation deal, according to a market source on Wednesday.

The Birchwood Park CLO, Ltd./Birchwood Park CLO LLC vehicle placed the $375 million AAA-rated tranche of notes at Libor plus 144 basis points.

Wells Fargo Securities, LLC was the placement agent.

The transaction is the third U.S. CLO offering that GSO/Blackstone, the New York City-based subsidiary of alternative asset manager GSO Capital Partners LP, has brought in 2014.

More than $7 billion of transactions remain in the deal pipeline, a source said.

KKR Financial Advisors II, LLC plans to bring its first CLO offering of the year.

KKR Financial is expected to offer $518 million of notes in the KKR CLO 9 Ltd./KKR CLO 9 LLC transaction, according to a market source.

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

The subsidiary of KKR Asset Management, LLC priced two CLO transactions in 2013.

Meanwhile, refinancing vintage CLOs remains on the upswing.

The strong primary supply over July “was propelled by six refinanced CLOs for $2.2 billion, which compares to only 11 CLOs which have been refinanced/repriced prior to July,” J.P. Morgan Securities LLC analysts said in a note.

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