Golub prices second broadly syndicated CLO; primary market shows ‘significant slowdown’

By Cristal Cody

Tupelo, Miss., March 25 – Golub Capital affiliate OPAL BSL LLC priced $407.5 million of notes in its second broadly syndicated transaction of the year.

Golub has priced two broadly syndicated CLOs and refinanced a vintage middle-market CLO so far this year.

CLO managers have priced more than $30 billion of broadly syndicated CLOs year to date, including $23 billion of new issues and $7 billion of refinancings, resets and reissues, BofA Merrill Lynch analysts said in a research note released on Monday.

“This marks a significant slowdown in primary market activity compared to 2018, when comparable issuance topped $52 [billion] at this point in the year,” the analysts said. “One of the ways in which managers have been able to price new CLOs this year has been by cutting short deal reinvestment periods.”

In its deal, OPAL BSL priced $407.5 million of notes due April 20, 2029 in the Golub Capital Partners CLO 41(B) Ltd./Golub Capital Partners CLO 41(B) LLC broadly syndicated transaction, according to market sources.

The CLO sold $256 million of class A floating-rate notes at Libor plus 137 basis points in the AAA-rated tranche.

BofA Merrill Lynch was the placement agent.

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

Golub Capital is a New York-based middle market lender.

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