Pretium upsizes CLO deal, expands CLO management; TPG prices $932.4 million CLO

By Cristal Cody

Tupelo, Miss., Feb. 14 – CLO deal action remains steady with a new broadly syndicated CLO and a commercial real estate CLO brought to the primary market.

Pretium Credit Management LLC priced the upsized $458 million Crown Point CLO 4, Ltd./Crown Point CLO 4, LLC offering in the first deal in the Crown Point series since 2015.

The last notes priced in the CLO series were sold in 2015 when Valcour Capital Management LLC priced the Crown Point CLO III, Ltd./Crown Point CLO III, LLC deal.

Valcour was acquired by investment firm Pretium Partners, LLC in 2017.

Pretium Credit Management also announced it reached an agreement to assume the management of two CLOs that are currently managed by NewMark Capital LLC.

The NewMark Capital Funding 2013-1 CLO Ltd. and NewMark Capital Funding 2014-2 CLO Ltd. vehicles currently hold about $750 million in assets.

After the NewMark assignments and the Crown Point CLO 4 transaction closes, Pretium said it will manage five CLOs that contain about $1.7 billion of assets under management.

In other primary action, TPG RE Finance Trust, Inc. priced a $932.4 million commercial real estate CLO.

“Our first broadly held CLO marks an important step in our growth and expansion,” Greta Guggenheim, chief executive officer of TPG RE Finance Trust, said in a news release. “Through this CLO, we have further diversified our sources of debt financing, significantly reduced our cost of funds, and created matched-term financing for approximately one-third of our loan portfolio as of December 31, 2017.”

Guggenheim said that in 2017, the firm originated about $2 billion of loans, a 67% increase from the previous year.

“This CLO enabled us to recycle $670 million of existing financing capacity to support our robust pipeline of new originations,” Guggenheim said.

Pretium prices

Pretium Credit Management priced $458 million of notes due April 20, 2031 in the Crown Point CLO 4 transaction, according to a news release.

The deal was upsized from $407.5 million.

Morgan Stanley & Co. LLC was the placement agent.

Proceeds from the offering will be used to purchase a portfolio of about $400 million of mainly first-lien senior secured leveraged loans.

Pretium Credit Management is an investment advisory firm based in New York.

TPG brings CLO

TPG RE Finance Trust priced $932.4 million of notes and preferred shares due Feb. 16, 2035 in the commercial real estate CLO transaction, according to a market source and a news release on Wednesday.

TPG Real Estate Finance 2018-FL1 Issuer, Ltd./TPG Real Estate Finance 2018-FL1 Issuer, LLC priced with a weighted average interest rate of Libor plus 108 basis points.

Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the bookrunners.

TPG RE Finance Trust Holdco, LLC will manage the CLO.

Proceeds were used to repay $670 million of borrowings under three of the company’s six secured credit facilities.

The CLO is backed by commercial mortgage assets.

TPG RE Finance Trust is a commercial real estate finance company that focuses primarily on originating, acquiring, and managing first mortgage loans and other commercial real estate-related debt instruments secured by U.S.-based institutional properties.

The San Francisco-based company is externally managed by TPG RE Finance Trust Management, LP, a part of TPG Real Estate, which is the real estate investment platform of alternative investment firm TPG Global, LLC.

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