PGIM refinances $937.35 million U.S. CLO, €385.83 million euro CLO; secondary volume rises

By Cristal Cody

Eureka Springs, Ark., Nov. 18 – PGIM, Inc. refinanced two CLO transactions in the U.S. and European markets.

The CLO manager refinanced a vintage 2014 U.S. offering and a vintage 2013 European deal.

More than $19 billion of CLOs have been refinanced year to date, according to market sources and Prospect News data.

In the secondary market, activity was strong over Thursday’s trading session, according to the latest data from Trace. More than $213 million of investment-grade issues and $275 million of non-investment-grade securities traded, up from $122 million of high-grade CBO/CDO/CLO issues and $263.9 million of non-high-grade debt in the previous session.

PGIM refinances CLO

Prudential Investment Management, Inc. affiliate PGIM refinanced $937.35 million of notes in a vintage 2014 U.S. CLO deal, according to a market source.

Dryden 33 Senior Loan Fund priced $630 million of class A-R floating-rate notes at Libor plus 143 basis points in the senior tranche.

The reset of the 2014 transaction also included $19.35 million of subordinated notes in an equity tranche.

Goldman Sachs & Co. was the refinancing agent.

The maturity on the refinanced notes was extended to Oct. 15, 2028 from the original July 15, 2026 maturity. In addition, the refinanced deal was structured to comply with Volcker regulations.

Proceeds from the transaction will be used to redeem the original notes.

Prudential Investment Management has priced three U.S. CLOs and refinanced two vintage U.S. CLOs year to date.

The primary asset management business of Newark, N.J.-based Prudential Financial Inc. priced four CLO deals in 2015.

PGIM refinances euro CLO

PGIM refinanced €385.83 million of notes due Dec. 9, 2025 in a vintage 2013 euro-denominated CLO, according to a market source.

Dryden XXVII Euro CLO 2013 BV priced €115 million of class A-1A-R floating-rate notes (//AAA/AAA) at Euribor plus 108 bps at the top of the capital structure.

Citigroup Global Markets Inc. was the refinancing agent.

The deal also will include amendments to comply with U.S. Volcker Rule regulations.

Proceeds will be used to redeem the original notes on Dec. 9 at par.

PGIM originally priced the CLO in 2013 and reopened it in 2014.

The CLO manager has priced two euro-denominated CLOs and refinanced one vintage CLO year to date.

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