Year-end pipeline fills; GSO/Blackstone preps $509.85 million CLO; Highbridge on calendar

By Cristal Cody

Tupelo, Miss., Dec. 10 – Primary activity is forecast to stay steady through the end of the year in the collateralized loan obligation market with two more managers joining the deal pipeline, according to market sources on Wednesday.

GSO/Blackstone Debt Funds Management LLC plans to price a $509.85 million CLO offering, a source said. GSO/Blackstone’s fifth U.S. CLO deal of the year, the Bowman Park CLO Ltd./Bowman Park CLO LLC offering includes fixed-rate and floating-rate tranches.

Highbridge Principal Strategies LLC is expected to bring $518.5 million of notes in the firm’s second CLO transaction this year, according to a market source.

More than $149 billion of CLOs have priced globally year to date, according to data compiled by Prospect News.

GSO/Blackstone to price

GSO/Blackstone Debt Funds Management is underway with plans to price a $509.85 million CLO deal, according to a market source.

The Bowman Park CLO transaction includes $304.6 million of class A senior secured floating-rate notes (Aaa/AAA/); $43 million of class B-1 senior secured floating-rate notes (/AA/); $25 million of class B-2 senior secured fixed-rate notes (/AA/); $31.5 million of class C secured deferrable floating-rate notes (/A/); $32.8 million of class D secured deferrable floating-rate notes (/BBB-/); $20.4 million of class E secured deferrable floating-rate notes (/BB-/); $8.4 million of class F secured deferrable floating-rate notes (/B/) and $44.15 million of subordinated notes.

J.P. Morgan Securities LLC is the placement agent.

The notes are due Nov. 28, 2025.

The deal is scheduled to close on Jan. 21.

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 four U.S. CLO transactions in 2014.

Highbridge preps CLO deal

Highbridge Principal Strategies intends to offer $518.5 million of notes due Jan. 21, 2026 in the Highbridge Loan Management 5-2015 Ltd./Highbridge Loan Management 5-2015 LLC transaction, according to a market source.

The offering includes $3 million of class X floating-rate notes (/AAA/); $309 million of class A floating-rate notes (/AAA/); $68.5 million of class B floating-rate notes (/AA); $34 million of class C deferrable floating-rate notes (/A/); $27.75 million of class D deferrable floating-rate notes (/BBB/); $21.25 million of class E deferrable floating-rate notes (/BB/); $8.75 million of class F deferrable floating-rate notes (/B/) and $46.25 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

The transaction is expected to close on Jan. 15.

Highbridge was last in the primary market on July 22 with the $513.5 million Highbridge Loan Management 4-2014 Ltd./Highbridge Loan Management 4-2014 LLC deal.

The New York City-based affiliate of Highbridge Capital Management, LLC brought two CLO transactions in 2013.

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