GSO/Blackstone prices $476.7 million CLO; First Eagle plans collateral addition

By Cristal Cody

Tupelo, Miss., April 15 – GSO/Blackstone Debt Funds Management LLC priced $476.7 million of notes in a static CLO in the first deal to price since mid-March.

In other activity, First Eagle Alternative Credit, LLC plans to issue up to $10 million of additional subordinated notes to increase collateral for a 2016 vintage broadly syndicated CLO.

Meanwhile, secondary market volume rose in the prior session for both high-grade CBO/CDO/CLO securities and lower-rated paper, Trace data shows.

Investment-grade secondary market volume increased to $573.54 million on Tuesday from $242.51 million on Monday, while trading volume in non-high-grade issues climbed to $424.88 million from $76.28 million at the week’s start.

In its deal, GSO/Blackstone Debt Funds Management priced $476.7 million of notes due May 1, 2028 in the Stratus 2020-1, Ltd. static CLO transaction, according to market sources.

The CLO sold $315 million of class A floating-rate notes at Libor plus 198 basis points in the senior tranche.

Separately, First Eagle Alternative Credit plans to issue up to $10 million of additional subordinated notes due Nov. 3, 2031 in the THL Credit Wind River 2016-2 CLO Ltd./THL Credit Wind River 2016-2 LLC deal, according to a market source and market notice on Tuesday.

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