Golub prices first TALF CLO but Fed program still lacks appeal, sources say

By Paola Aurisicchio
23 Oct 2020

Golub Capital priced the first CLO to take advantage of the Term Asset Backed Securities Loan Facility last week, selling a $678m static transaction arranged by Société Générale backed by a pool of mostly middle market loans. The deal, expected to close on October 30, may pave the way for more middle market managers to tap TALF funds, but sources remain skeptical that the program will have much impact on the wider CLO space.

The CLO includes $409.5m of senior notes, rated triple-A by Kroll Bond Rating and S&P Global Ratings, sold at 195 over Libor. 

The transaction has a non-call period ending in April 2021 and is backed by a static pool of loans, with no active management of the loan pool. ...

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