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Today’s new issue surpassed Blackstone’s earlier ones this year in achieving tighter prints throughout the mezzanine tranches. From the double-As down to the double-Bs, everything priced at least 10bps tighter than they had in those prior new issues.
We previewed the deal in our pipeline this week. Captree Park is a standard five-year reinvestment period, two-year call lock deal. The CLO is $863.6m in size, putting Blackstone’s overall new issuance of US CLOs at around $2.4bn for the year so far. In all four of those new issue deals, Blackstone printed the senior triple-As or at within one basis point of SOFR+150bps.
Captree Park’s senior triple-As priced at SOFR+150bps and attached at 38.5%, while the juniors were at S+170bps and 33%. Investors were invited to “call desk” on the seniors as of 5 April, according to marketing materials seen by 9fin. The blended spread on the triple-As is S+151.64bps.
The double-As were split into two pari-passu tranches. A floating-rate tranche printed at S+190bps, in line with marketing guidance of S+190bps-195bps, while a floating-rate tranche paid 6.146%. All three prior US CLO new issues by Blackstone this year priced their double-As at S+200bps.
The single-As priced at S+230bps, after being shown earlier at S+230bps-240bps. Blackstone’s earlier new issues in the market this year printed those notes at either S+245bps or S+240bps.
The triple-Bs and double-Bs both priced tighter than marketing guidance as of 5 April.
The triple-Bs priced at S+325bps, having been shown at S+330bps-345bps. The double-Bs priced at S+600bps and were shown at S+610bps-630bps.
Blackstone’s prior new issue US CLOs this year printed their triple-Bs at S+350bps or S+360bps, and their double-Bs between S+645bps and S+675bps.
All tranches priced at par.
Captree Park is 9.6x leveraged and its cost of debt is S+191.3bps.
Captree Park — new issue
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