Blackstone/GSO, OPAL, ArrowMark, Wellfleet price CLOs; York, MJX refinance; spreads soften

By Cristal Cody

Tupelo, Miss., March 9 – Both the U.S. and euro primary markets remain active in early March with new issuance, sources reported Monday.

Blackstone/GSO Debt Funds Management Europe Ltd. priced a €409.1 million euro-denominated CLO.

In the middle market, Deerpath Capital Management, LP priced an upsized $330 million of notes in the Deerpath Capital CLO 2020-1, Ltd./Deerpath Capital CLO 2020-1, LLC deal on Thursday. Final pricing details were not immediately available.

GreensLedge Capital Markets, LLC and Raymond James & Associates Inc. were the placement agents.

The offering was upsized from $305 million.

In other new issuance, OPAL BSL LLC priced a $559.7 million broadly syndicated CLO.

ArrowMark Colorado Holdings LLC brought a new $504.5 million broadly syndicated CLO deal to the primary market.

Wellfleet Credit Partners, LLC priced a new $457.38 million CLO offering as well as a $418 million refinancing of two tranches of notes from a vintage 2017 CLO.

York CLO Managed Holdings, LLC refinanced $368.4 million of notes from a 2016 CLO deal.

In other refinancing activity, MJX Asset Management LLC affiliate MJX Venture Management LLC priced $362.5 million of notes in one tranche in a downsized second refinancing of a vintage 2013 CLO.

CLO spreads so far have softened but not to the levels of weakness seen elsewhere in the financial markets from economic concerns over the coronavirus, market sources said.

“Through last week, we did not see BBB/BB CLO spreads widening to levels that equity or treasury markets would suggest; we believe lower mezz has more widening to come,” Wells Fargo Securities LLC analysts said in a research note on Monday.

“At this point, we have not adjusted our issuance forecasts, but an extended downturn would lead to less CLO issuance and an increased likelihood of warehouse liquidations,” the analysts said.

New issue CLO spreads widened about 1 basis point to 165 bps across the capital structure compared to a week earlier, BofA Securities Inc. analysts said in a research note on Friday.

New issue AAAs were 1 bp wider on the week at Libor plus 119 bps on average. BB tranches moved out 165 bps to the Libor plus 825 bps area.

“We expect new issuance for the month to be slow as the global market volatility story continues,” the BofA analysts said.

New issue volume totals $11 billion, while the refinancing space has cooled in March after a record February produced $21 billion of supply in the most volume since 2017, according to the report.

Year to date, about $25 billion of vintage CLOs have been refinanced.

Blackstone/GSO prices new CLO

Blackstone/GSO Debt Funds Management Europe priced €409.1 million of notes due 2032 in the CLO offering, according to market sources.

Vesey Park CLO DAC sold €243 million of class A-1 floating-rate notes at Euribor plus 97 bps at the top of the capital structure.

Merrill Lynch International was the placement agent.

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

Blackstone/GSO is a Dublin-based manager and affiliate of Blackstone Group LP.

OPAL prints $559.7 million

OPAL priced $559.7 million of notes due April 17, 2033 in its broadly syndicated CLO deal, according to market sources.

Golub Capital Partners CLO 48(B) Ltd./Golub Capital Partners CLO 48(B) LLC sold $341 million of class A-1 floating-rate notes at Libor plus 131 bps at the top of the stack.

Credit Suisse Securities (USA) LC was the placement agent.

The Rule 144A and Regulation S transaction is backed by broadly syndicated first lien senior secured loans.

OPAL is an affiliate of New York-based middle market lender Golub Capital.

ArrowMark sells $504.5 million CLO

ArrowMark Colorado Holdings sold $504.5 million of notes due April 15, 2033 in the Elevation CLO 2020-11, Ltd./Elevation CLO 2020-11 LLC offering, according to market sources.

Elevation CLO 2020-11 priced $320 million of class A floating-rate notes at Libor plus 132 basis points in the AAA-rated tranche.

Goldman Sachs & Co. LLC was the placement agent.

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

The investment management firm is based in Denver.

Wellfleet prices $457.38 million

Wellfleet Credit Partners priced $457.38 million of notes in its new issue deal, according to a market source.

Wellfleet CLO 2020-1, Ltd. sold $279 million of class A-1A floating-rate notes at Libor plus 131 bps at the top of the capital stack.

Morgan Stanley & Co. LLC was the placement agent

The CLO is collateralized primarily by broadly syndicated first lien senior secured loans.

The Greenwich, Conn.-based performing credit arm was created in 2015 by private investment firm Littlejohn & Co., LLC.

Wellfleet brings $418 million

In the refinancing transaction, Wellfleet Credit Partners priced $418 million of notes in two tranches, according to a notice of revised proposed first supplemental indenture on Friday.

Wellfleet CLO 2017-2, Ltd./Wellfleet CLO 2017-2 LLC sold $354.75 million of class A-1-R senior secured floating-rate notes at Libor plus 106 bps and $63.25 million of class A-2-R senior secured floating-rate notes at Libor plus 162 bps.

MUFG was the refinancing placement agent.

The original $557 million offering of notes due Oct. 20, 2029 was issued Sept. 26, 2017.

The CLO is collateralized primarily by broadly syndicated first lien senior secured corporate loans.

York refinances $368.4 million

York CLO Managed Holdings priced $368.4 million of notes at par in the refinancing of a 2016 CLO deal, according to a market source and a notice of executed and amended and restated indenture on Friday.

York CLO-4 Ltd./York CLO-4 LLC sold $246.5 million of class A-1-R senior floating-rate notes at Libor plus 109 bps at the top of the capital stack.

Goldman Sachs was the refinancing placement agent.

The maturity was extended by two years to April 20, 2032.

The original $408 million transaction was issued Dec. 13, 2016.

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

The New York City-based firm is a subsidiary of York Capital Management Global Advisors, LLC.

MJX downsizes refinancing

MJX Venture Management came with $362.5 million of notes in a downsized second refinancing of a vintage 2013 CLO, according to a notice of revised proposed supplemental indenture on Friday.

Venture XIII CLO, Ltd./Venture XIII CLO, LLC sold $362.5 million of class A-R2 senior secured floating-rate notes due Sept. 10, 2029 (expected ratings Aaa) at Libor plus 105 bps.

The deal was downsized from an initially expected $457.5 million second refinancing.

Goldman Sachs was the refinancing placement agent.

The original $600 million CLO was issued on March 25, 2013 and was first refinanced on Sept. 17, 2017.

The CLO is backed primarily by broadly syndicated senior secured corporate loans.

MJX is an asset management firm based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.