Golub plans $408.92 million reissue of 2015 CLO; secondary market activity moderate

By Cristal Cody

Tupelo, Miss., March 22 – CLO refinancing activity is picking up with more expected after April if no appeals are filed against the U.S. Court of Appeals for the District of Columbia’s ruling earlier in February regarding regulation of the market.

Golub Capital intends to refinance $408.92 million from a 2015 CLO in the firm’s first reported refinancing of the year.

More than $25 billion of vintage CLOs have been refinanced year to date, sources report.

The court’s ruling removes the risk retention requirement that CLO managers retain 5% of a CLO deal.

In other activity, secondary market volume was more moderate on Wednesday with $117.63 million of investment-grade issues and $96.28 million of non-investment-grade securities traded, according to Trace data.

In its deal, Golub Capital plans to price $408.92 million of notes in a refinancing and reset of the Golub Capital Partners CLO 26(B)-R Ltd./Golub Capital Partners CLO 26(B)-R LLC transaction, according to a market source.

The deal is expected to include $236 million of class A-1-R floating-rate notes (//AAA); $20 million of class A-2-R floating-rate notes; $42 million of class B-R floating-rate notes; $21.25 million of class C-R floating-rate notes; $26.25 million of class D-R floating-rate notes; $22.5 million of class E-R floating-rate notes and $40.92 million of subordinated notes.

Wells Fargo Securities LLC is the refinancing placement agent.

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