Blackstone/GSO sell €410.85 million CLO; MP CLO Management firms reissue spreads

By Cristal Cody

Tupelo, Miss., May 14 – New issue and refinancing activity remains steady in both the U.S. and European CLO primary markets.

Blackstone/GSO Debt Funds Management Europe Ltd. priced €410.85 million of notes in a new offering.

MP CLO Management LLC refinanced $381.95 million of notes from a 2015 CLO in a transaction that lowered the borrowing costs of the CLO by reducing its weighted average cost of debt by 68 basis points – to Libor plus 140 bps from Libor plus 208 bps.

Elsewhere, the U.S. CLO secondary market ended Friday with AAA spreads on average about 2 bps tighter on the week at Libor plus 100 bps, according to a BofA Merrill Lynch note released Monday. BB-rated spreads tightened 25 bps week over week to the Libor plus 550 bps area.

BWIC volume totaled about $375 million for the past week, according to the note.

Blackstone/GSO brings CLO

Blackstone/GSO Debt Funds Management Europe priced €410.85 million of notes due July 15, 2031 in the Milltown Park CLO DAC transaction, according to a market source on Monday.

The CLO priced €248 million of class A-1 senior secured floating-rate notes at Euribor plus 80 bps at the top of the capital structure.

BofA Merrill Lynch was the placement agent.

Dublin-based Blackstone/GSO Debt Funds Management Europe is a subsidiary of asset manager GSO Capital Partners LP.

MP CLO reprices $460 million

MP CLO Management refinanced $381.95 million of notes due Oct. 28, 2027 from a 2015 vintage CLO deal, according to a market source, a notice of executed second supplemental indenture and a news release from Marble Point Loan Financing Ltd.

MP CLO VIII, Ltd./MP CLO VIII, LLC, originally named ACAS CLO 2015-2, Ltd./ACAS CLO 2015-2 LLC, priced $325 million of the class A-R senior secured floating-rate notes at Libor plus 91 bps.

Morgan Stanley & Co. LLC was the refinancing agent.

MP CLO Management, formerly known as American Capital CLO Management, LLC, is the CLO manager.

ACAS CLO 2015-2 CLO originally was issued Aug. 26, 2015 and priced $225 million of class A senior secured floating-rate notes at Libor plus 150 bps.

MP CLO Management is a subsidiary of Greenwich, Conn.-based Marble Point Credit Management LLC, which is the investment manager of Marble Point Loan Financing.

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