Another actively-managed collateralized loan obligation joins the pipeline. This latest from Golub Capital, through its invesment management arm, worth $502.51 million.
The transaction, Golub Capital Partners CLO 16, is backed by a revolving pool consisting primarily of middle-market senior secured loans.
Wells Fargo Securities is arranging the deal.
It features a $275.00 million A tranche, a $50 million B tranche, a $45 million deferrable C tranche, and $132.51 million of subordinated notes. Only the A notes were rated by Standard and Poor's; the agency assigned them its 'AAA' rating.
Price talk on the A notes is set at three-month Libor plus 165 basis points. The B notes are marketed at three-month Libor plus 230 basis points and the C notes at 320 basis points.
The collateral pool includes 123 obligators with an average holding of 0.77%. The largest obligator holds 2.74% of the portfolio and the smallest 0.01%.
GC Investment Management has the ability to enter into trading plans to satisfy the reinvestment guidelines, however, only one trading plan may be entered into at a time and each trading plan may not account for more than 5% of the portfolio's collateral amount, according to S&P. Additionally, GC will be restricted from entering into any future trading plans if there have been two previously unsuccessful trading plans.
S&P also noted during the reinvestment period, the collateral manager may direct excess interest proceeds to be transferred to the supplemental reserve account to deposit into the collection account and utilize as principal proceeds, repurchase the notes of any class, or pay refinancing-related expenses.
GC Investment Management currently manages 11 other CLOs.