Gallatin prices $436.5 million CLO; GSO/Blackstone top U.S. CLO manager

By Cristal Cody

Tupelo, Miss., Aug. 30 – New August CLO issuance includes a $436.5 million deal from Gallatin Loan Management, LLC that closed on Thursday.

Volume year to date includes about $75 billion of new issues and more than $100 billion of refinanced and reset vintage CLOs, according to market sources.

“The collateralized loan obligation market remained busy in the first half of 2018, with high levels of both new issuance and resets driving slight shifts in the rankings of the most active U.S. and European CLO managers, in terms of both deal count and assets under management,” Moody’s Investors Service said in its August CLO report.

“That said, the 10 largest U.S. managers’ share of the market remained the same, at 28% of [assets under management], while the 10 largest European managers’ share of 54% of total AUM was slightly lower than their 56% share in H2 2017.”

GSO/Blackstone Debt Funds Management LLC added two CLO deals in the first half of the year, surpassing Carlyle CLO Management LLC, to become the top U.S. CLO manager by both assets under management and deal count, Moody’s said. GSO/Blackstone has priced a total of 26 CLO deals and has $15.5 billion of assets under management, while Carlyle, which ranked second, has priced 25 CLOs and has $13.1 billion of assets under management.

CIFC Asset Management LLC rose two spots in the deal count rankings and three spots in the assets under management rankings after adding two CLOs totaling $1.8 billion, Moody’s said. The CLO manager has priced a total of 23 CLO deals and has $14.2 billion of assets under management.

Sound Point Capital Management LP, with 18 CLOs and $11.1 billion under management, entered the top 10 by both deal count and assets, while Voya Alternative Asset Management LLC and PGIM, Inc. dropped out of the top 10 list by deal count, according to the report.

GSO/Blackstone also was the top European CLO deal manager with 16 euro-denominated CLO deals and €6.9 billion of assets under management to date, Moody’s said.

Carlyle ranks as the second top European CLO manager with 14 deals and €5.6 billion of assets under management, according to the report.

Gallatin places CLO IX

Gallatin Loan Management priced $436.5 million of notes due Jan. 21, 2028 in the new CLO transaction, according to a market source.

Gallatin CLO IX 2018-1 Ltd. sold the $280.5 million of class A senior secured floating-rate notes at Libor plus 105 basis points.

Morgan Stanley & Co. LLC was the placement agent.

The issue is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Gallatin is a CLO management firm based in San Juan, Puerto Rico.

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