Blackstone/GSO offers CLO; Anchorage, THL to refinance; high-grade secondary strong

By Cristal Cody

Eureka Springs, Ark., Sept. 28 – CLO pricing and refinancing activity is expected to remain strong over the next few weeks, according to market sources.

Blackstone/GSO Debt Funds Management Europe Ltd. plans to price a €415.1 million CLO in the firm’s third European deal of the year.

In refinancing activity, Anchorage Capital Group, LLC plans to refinance $516.7 million of notes in a reset of a vintage 2012 CLO.

Also, THL Credit Advisors LLC plans to refinance $514.33 million of notes in a vintage 2012 CLO.

Year to date, about $6 billion of CLOs have been refinanced, according to J.P. Morgan Securities LLC.

High-grade securitized secondary volume has been strong over the first two sessions of the week.

On Tuesday, $356 million traded in 38 high-grade CBO/CDO/CLO issues and $385.3 million traded in 30 non-investment-grade CBO/CDO/CLO securities, according to Trace.

In the secondary market on Monday, 29 high-grade CBO/CDO/CLO issues totaling $388.5 million and 19 non-investment-grade CBO/CDO/CLO securities totaling $85.33 million were traded.

Blackstone/GSO to tap Europe

Blackstone/GSO Debt Funds Management Europe is marketing €415.1 million of notes due 2029 in a new euro-denominated collateralized loan obligation transaction, according to a market source.

The Clarinda Park CLO DAC deal includes €239 million of class A-1 senior secured floating-rate notes (Aaa/AAA); €52 million of class A-2 senior secured floating-rate notes (Aa2/AA); €21 million of class B senior secured deferrable floating-rate notes (A2/A); €22 million of class C senior secured deferrable floating-rate notes (Baa2/BBB); €25 million of class D senior secured deferrable floating-rate notes (Ba2/BB); €11 million of class E senior secured deferrable floating-rate notes (B2/B-) and €45.1 million of subordinated notes.

Citigroup Global Markets Ltd. will arrange the offering.

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

Blackstone/GSO has priced two euro-denominated CLOs year to date.

The Dublin-based manager is an affiliate of Blackstone Group LP.

Anchorage Capital refinancing

Anchorage Capital Group plans to refinance $516.7 million of notes in a reset of the Anchorage Capital CLO 2012-1 Ltd./Anchorage Capital CLO 2012-1 LLC transaction, according to a market source.

The CLO will price $311.6 million of class A-1-R floating-rate notes (AAA); $63 million of class A-2-R floating-rate notes (AA); $37.1 million of class B-R deferrable floating-rate notes (A); $25.7 million of class C-R deferrable floating-rate notes (BBB); $22.6 million of class D-R deferrable floating-rate notes (BB) and $56.7 million of subordinated notes.

In addition, the maturity date will be extended by two years to Jan. 13, 2027 and the reinvestment period will be extended to Jan. 13, 2019.

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

Proceeds from the refinancing will be used to redeem the original notes on Oct. 13.

Anchorage Capital Group has priced one CLO deal and one CDO offering year to date.

The New York City-based asset manager brought two CLOs and two CDOs to market in 2015.

THL to refinance CLO

THL Credit Advisors plans to refinance $514.33 million of notes in a vintage 2012 broadly syndicated CLO transaction, according to a market source.

THL Credit Wind River 2012-1 CLO Ltd./THL Credit Wind River 2012-1 LLC will sell $316.3 million of class A-R floating-rate notes (AAA); $60.2 million of class B-R floating-rate notes (AA); $30.1 million of class C-R floating-rate notes (A); $30.1 million of class D-R floating-rate notes (BBB); $24.5 million of class E-R floating-rate notes (BB) and $53.13 million of subordinated notes.

MUFG is the refinancing underwriter.

The maturity on the original notes due Jan. 15, 2024 will be extended by about two years on the refinanced tranches.

THL Credit Advisors has priced one CLO deal year to date and has one new CLO deal in the pipeline.

The CLO manager priced two CLO transactions in 2015.

Boston-based THL Credit Advisors is an alternative credit investment firm.

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