GSO Capital Partners, a credit investment arm of Blackstone Group, is in the market with a $633 million CLO.
Moody's Investor Service provisionally assigned the $428 million, senior-most tranche of the deal Central Park CLO, Ltd. a rating of AAA.
Standard & Poor's also assigned its highest rating to the senior-most notes. Its presale report said the CLO would issue a total of $633 million in floating-rate notes in six other tranches, including a subordinated tranche.
Central Park is a managed cash flow CLO, according to both rating agencies. The transaction is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.
At least 92.5% of the portfolio must be invested in senior secured loans or eligible investments and up to 7.5% of the portfolio may consist of senior secured bonds, senior secured notes, senior unsecured bonds, senior unsecured loans and second-lien loans.
At closing, the portfolio is expected to be approximately 80% ramped up and is expected to be fully ramped within five months thereafter.
Moody's said GSO/Blackstone Debt Funds Management, an affiliate of Customized Credit Strategies ,will direct the selection, acquisition and disposition of collateral on behalf of the CLO during its three-and-a-half-year reinvestment period.