Garrison Capital prices $300 million CLO; CSAM to price $808.9 million deal

By Cristal Cody

Eureka Springs, Ark., Sept. 15 – Middle-market lender Garrison Capital Inc. tapped the CLO primary market with a $300 million offering.

The Garrison Funding 2016-2 Ltd. deal included fixed- and floating-rate notes.

“We are very pleased with the pricing and the terms of the refinancing of our CLO which was structured and placed by Natixis, our longstanding financing partner,” Brian Chase, the company’s chief financial officer, said in the release. “This new facility will provide us with long-dated, flexible and stable funding for our future investment activities.”

Garrison Capital, an affiliate of Garrison Investment Group LP, announced on Thursday that it sold a $300 million CLO offering.

Garrison Funding 2016-2 priced $25 million of class A-1R revolver notes at par with a coupon of Libor plus 220 basis points and $88.15 million of class A-1T term notes at par with a coupon of Libor plus 220 bps at the top of the capital structure.

Natixis Securities America LLC was the placement agent.

The notes are due in September 2027, and the reinvestment period ends in September 2020.

Garrison Capital said it will use the proceeds to refinance its existing CLO and will result in a reduction in the company’s regulatory leverage ratio while modestly increasing the weighted average cost of funds.

Coming up in broadly syndicated CLO pricing action, Credit Suisse Asset Management, LLC plans to price an $808,975,000 U.S. risk retention-compliant transaction.

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