BlackRock, CVC tap Europe; GLG closes on €411.5 million CLO; Blackstone/GSO reprices

By Cristal Cody

Tupelo, Miss., Nov. 5 – Two CLO managers tapped the European primary market with new deals, while a third refinanced a vintage euro-denominated CLO.

BlackRock Investment Management (UK) Ltd. priced €411.25 million of notes in the CLO offering.

CVC Credit Partners Group Ltd. sold €409.6 million of notes in its transaction.

Also, GLG Partners LP closed Monday on a new €411.5 million CLO deal.

In other market action, Blackstone/GSO Debt Funds Management Europe Ltd. priced €410.25 million of notes in a refinancing and reset of a 2016 vintage CLO.

The deals take new issue European volume to about €25 billion, while about €17 billion of CLOs have been refinanced and or reset year to date, according to a BofA Merrill Lynch research note released on Monday.

The European primary market otherwise was quiet over the week with light CLO trading volume of about €185 million of bonds on BWIC lists, according to the note.

“Spreads in the middle of the capital structure appeared to widen earlier in the week, before stabilizing as demand improved towards the end of the week,” the note said.

European A-rated and BBB-rated spreads were on average in the low Euribor plus 200 basis points area and low Euribor plus 300 bps area by the end of the past week.

“CLOs are currently trading at or close to their YTD wides across the capital structure, negatively impacted by stock market volatility and weakening risk appetite over the last few weeks,” the note said. “However, the market tone appeared to improve towards the end of this week, and we would expect the rally in European stocks over the last few days, as well as tightening in credit spreads to be reflected in improved CLO pricing over the next few days, barring renewed market weakness.”

BlackRock prices CLO

BlackRock Investment Management (UK) priced €411.25 million of notes due Oct. 15, 2031 in the BlackRock European CLO VII DAC transaction, according to a market source.

The CLO sold €240 million of class A senior secured floating-rate notes (Aaa//AAA) at Euribor plus 96 bps in the AAA-rated tranche.

Barclays was the placement agent.

The deal is backed primarily by euro-denominated broadly syndicated senior secured obligations.

BlackRock Investment Management (UK) has priced three new euro-denominated CLOs year to date.

The investment management firm is a London-based subsidiary of BlackRock, Inc.

CVC brings €409.6 million CLO

CVC Credit Partners Group priced €409.6 million of notes due Jan. 23, 2032 in the CVC Cordatus Loan Fund XII DAC transaction, according to market sources.

The CLO sold €242 million of class A-1 senior secured floating-rate notes at Euribor plus 96 bps at the top of the capital stack.

BNP Paribas, London Branch was the placement agent.

CVC Credit Partners European CLO Management LLP is the CLO manager.

The issue is backed primarily by euro-denominated senior secured obligations.

CVC is the credit management arm of London-based private equity firm CVC Capital Partners Ltd.

GLG prices €411.5 million

GLG Partners priced €411.5 million of notes due Dec. 15, 2031 in the Man GLG Euro CLO V DAC offering that closed on Monday, according to market sources.

Credit Suisse Securities (Europe) Ltd. arranged the transaction.

The CLO is collateralized primarily by secured senior loans and senior secured bonds.

GLG Partners is an alternative asset manager based in London.

Blackstone/GSO refinances

Blackstone/GSO Debt Funds Management Europe priced €410.25 million of notes in a refinancing and reset of the vintage 2016 Griffith Park CLO DAC transaction, according to market sources.

The CLO sold €264 million of the class A-1A-R senior secured floating-rate notes at Euribor plus 96 bps.

Deutsche Bank AG, London Branch was the refinancing placement agent.

The maturity on the notes will be extended to Nov. 21, 2031 from the original Oct. 15, 2029 maturity.

In the original €453.6 million transaction issued Sept. 8, 2016, the CLO sold €261.8 million of class A-1 senior secured floating-rate notes at par to yield Euribor plus 123 bps.

Proceeds will be used to redeem the original notes at par.

The CLO is backed primarily by euro-denominated secured senior loans or notes.

Dublin-based Blackstone/GSO is a subsidiary of asset manager GSO Capital Partners LP.

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