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.

KKR in pipeline

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.

CIFC refinances

Refinancing vintage CLOs remains on the upswing, with details emerging of CIFC Asset Management LLC’s refinancing transaction ahead of its planned $626.5 million CIFC Funding 2014-IV, Ltd./CIFC Funding 2014-IV, LLC deal.

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.

CIFC refinanced $423 million of 10-year floating-rate notes in the vintage CIFC Funding 2012-1 Ltd./CIFC Funding 2012-1 LLC transaction, according to a market source.

The CLO refinanced the AAA-rated slice at Libor plus 115 bps.

Citigroup Global Markets Inc. was the refinancing agent.

Credit Suisse Asset Management, LLC also refinanced $365.5 million of notes due Nov. 16, 2022 in the Atrium VII/Atrium VII, LLC transaction originally priced in 2011, according to a market source.

Credit Suisse and MUFG were the refinancing agents. Final repricing details were not available by press time.

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