Golub prices $1 billion CLO in second new middle-market deal; Voya refinances 2015 CLO notes

By Cristal Cody

Tupelo, Miss., July 25 – Middle-market CLO volume is on the rise in July with a new $1 billion-plus deal from Golub Capital affiliate GC Investment Management LLC.

The CLO manager sold $1,005,000,000 of notes in the firm’s second new transaction of the year.

More than $8 billion of middle-market CLOs have priced year to date, according to market sources.

CLO refinancing action also continues with details out on a reprint from Voya Alternative Asset Management LLC.

Voya refinanced $506 million of notes from a vintage 2015 broadly syndicated CLO.

CLO managers have refinanced more than $71 billion of CLOs year to date, sources report.

New issue spreads ended the second quarter softer with AAAs an average of 6 basis points wider, according to Fitch Rating’s quarterly global CLO market report.

CLO AAA spreads averaged at Libor plus 106 bps in the second quarter, up from the Libor plus 100 bps average in the first quarter but down from the Libor plus 116 bps average in the last quarter of 2017, according to the report.

Golub CLO 38(M) prints

GC Investment Management priced $1,005,000,000 of notes due July 20, 2030 in the new Golub Capital Partners CLO 38(M), Ltd./Golub Capital Partners CLO 38(M), LLC middle-market transaction, according to a market source.

The deal was upsized from an expected $1,002,810,000 offering.

The CLO sold the class A floating-rate notes (/AAA/AAA) at a discount margin of Libor plus 145 bps.

Wells Fargo Securities LLC was the placement agent.

The CLO is backed by middle-market first lien senior secured term loans.

Golub Capital has priced two new CLOs and refinanced three vintage CLOs year to date.

In 2017, the New York-based middle market lender priced two CLO transactions.

Voya refinances $506 million

Voya Alternative Asset Management priced $506 million of notes due July 23, 2027 in a refinancing of the Voya CLO 2015-2, Ltd./Voya CLO 2015-2 LLC deal, according to a market source and a notice of executed supplemental indenture on Tuesday.

Voya CLO 2015-2 sold $335.5 million of class A-R senior secured floating-rate notes at Libor plus 97 bps at the top of the capital stack.

Morgan Stanley & Co. LLC arranged the offering.

The securities originally were issued as a $569 million deal on July 23, 2015. In the initial offering, the CLO sold the $335.5 million of class A floating-rate notes at Libor plus 140 bps at par.

The CLO is backed mainly by broadly syndicated first lien senior secured loans.

Voya has priced two new CLOs and refinanced three vintage CLOs year to date.

In 2017, the CLO manager placed four new CLOs and refinanced three vintage CLOs.

The firm is an affiliate of New York City-based Voya Investment Management LLC.

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