GSO/Blackstone Debt Funds Management is marketing a fifth 2018 U.S. CLO deal, adding to its newly minted status as the highest-volume U.S. collateralized loan obligation manager.
GSO/Blackstone is sponsoring the $509.6 million Myers Park CLO, according to presale reports. The new CLO will add to $3.2 billion in prior deals the distressed-debt fund specialist has printed this year, and will maintain the Blackstone Group affiliate’s newly elevated position as the largest CLO issuer by both deal count and assets under management, according to league tables published last week by Moody’s Investors Service.
GSO/Blackstone currently has 26 U.S. CLOs under management totaling $15.5 billion, according to Moody’s, and moved ahead of the deal count of alternative asset manager of the Carlyle Group, the 2017 league-table leader. Carlyle has fallen to fourth with $13.1 billion in 25 deals under management after also being surpassed this year by CIFC ($14.2 billion, 23 deals) and Credit Suisse ($13.9 billion, 19 deals), according to Moody’s.
Myers Park is the smallest of GSO/Blackstone’s deals this year, and includes a split Class A note structure of $293.8 million in Class A-1 notes (expected to price at a spread of 112 basis points over three-month Libor) and $26.3 million in Class A-2 notes at a spread of 140 basis points. Fitch Ratings rates both tranches at AAA; S&P Global Ratings has assigned a preliminary triple-A rating to the Class A-1 notes.
Barclays is arranging the latest deal, which has a five-year reinvestment period and a two-year non-call.
The deal is the latest new-issue deal for GSO since the issuance of the $561 million Fillmore Park CLO in June via Greensledge/Wells Fargo. Other GSO deals this year include Greenwood Park in January ($1.07 billion), Cook Park in March ($1.03 billion) and the $512.1 million Chenango Park CLO.
GSO/Blackstone has also issued two European CLOs in 2018: the €413 million Marlay Park (also through Barclays) and the €410.9 million Milltown Park CLO deal arranged by Bank of America Merrill Lynch, according to presale reports.
According to Moody's, the market share of the top 10 U.S. managers by AUM is unchanged from 2017 (28%).
