GSO/Blackstone raises $510 million, prices AAAs at Libor plus 148 bps; new AAAs wider

By Cristal Cody

Tupelo, Miss., Dec. 22 – December CLO issuance remains active but is expected to wind down for the year, according to market sources on Monday.

Details emerged on GSO/Blackstone Debt Funds Management LLC’s $510 million nine-tranche CLO offering, which placed the AAA-rated tranche of notes at Libor plus 148 basis points, according to a market source.

CLO manager tiering pricing continues to be seen in the new issue AAA tranches, which have softened over the year, according to a market source.

CLO AAA-rated notes have priced on average between Libor plus 145 bps and Libor plus 170 bps, about 10 bps wider year to date, a source said.

GSO/Blackstone Debt Funds Management priced $510 million of notes due Nov. 28, 2025 in the CLO deal via J.P. Morgan Securities LLC, according to a market source.

Bowman Park CLO Ltd./Bowman Park CLO LLC brought $304.6 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 148 bps at the top of the capital structure.

The CLO also sold $8.4 million of class F secured deferrable floating-rate notes (/B/) at Libor plus 700 bps at the bottom of the stack.

GSO/Blackstone previously was in the U.S. primary market in September with the $564.3 million Thacher Park CLO Ltd./Thacher Park CLO LLC offering.

The New York City-based subsidiary of alternative asset manager GSO Capital Partners LP has priced five U.S. CLO transactions in 2014.

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