Pramerica, Apollo, MP Senior Credit Partners tap U.S., European CLO markets

By Cristal Cody

Tupelo, Miss., Nov. 21 -Pramerica Investment Management Ltd., Apollo Credit Management LLC and MP Senior Credit Partners LP brought new collateralized loan obligation deals, according to market sources.

Pramerica brought an upsized €414.75 million of notes in the firm's second European CLO priced this year, according to informed market sources.

The AAA portion priced at Euribor plus 140 basis points, while the bottom tranche priced at Euribor plus 625 bps.

Several euro-denominated CLO deals remain in the pipeline, including an offering from CVC Credit Partners, LLC via Goldman Sachs & Co., sources said.

In the U.S. CLO market, Apollo sold $608.86 million in the ALM VIII, Ltd./ALM VIII, LLC CLO. The CLO priced the triple A-rated tranche at Libor plus 145 bps and the bottom tranche at Libor plus 490 bps.

Also in the market, MP Senior Credit Partners raised about $425 million in the Gallatin CLO VI 2013-2, Ltd./Gallatin CLO VI 2013-2, LLC transaction, according to market sources.

The CLO priced the AAA slice at Libor plus 145 bps.

Pramerica upsizes

Pramerica Investment Management sold €414.75 million of notes due Jan. 15, 2026 in the Dryden 29 Euro CLO 2013 BV transaction, according to informed market sources.

The offering was upsized from about €300 million, a source said.

The CLO priced €150.25 million of class A-1A senior secured floating-rate notes (Aaa/AAA/) at Euribor plus 140 bps; €75 million of 2.61% class A-1B senior secured fixed-rate notes (Aaa/AAA/); €25.5 million of class B-1A senior secured floating-rate notes (Aa2/AA/) at Euribor plus 200 bps; €25 million of 3.5% class B-1B senior secured fixed-rate notes (Aa2/AA/); €32.75 million of class C mezzanine secured deferrable floating-rate notes (A2/A/) at Euribor plus 300 bps; €23.25 million of class D mezzanine secured deferrable floating-rate notes (Baa2/BBB/) at Euribor plus 380 bps and €22 million of class E mezzanine secured deferrable floating-rate notes (Ba2/BB/) at Euribor plus 525 bps; €17.5 million of class F mezzanine secured deferrable floating-rate notes (B2/B-/) at Euribor plus 625 bps and €43.5 million of subordinated notes.

BofA Merrill Lynch arranged the deal.

The CLO is backed by a revolving pool of euro-denominated broadly syndicated senior secured corporate loans and bonds.

Pramerica Investment Management, the London-based leveraged finance arm of Newark, N.J.-based Prudential Financial, Inc., will manage the CLO.

The firm closed in May on the €300 million Dryden XXVII Euro CLO 2013 BV deal.

Apollo prices $608.86 million

Apollo Credit Management sold a $608,856,000 CLO offering of notes due Jan. 15, 2026, according to an informed source.

The ALM VIII CLO priced $270 million of class A-1a senior secured floating-rate notes (//AAA) at Libor plus 145 bps and $120 million of A-1b senior secured floating-rate notes (//AAA) at Libor plus 110 bps, which step up after the first 18 months.

The CLO also sold $43.75 million of class A-2a senior secured floating-rate notes at Libor plus 185 bps; $7 million of 4.194% class A-2b senior secured fixed-rate notes; $36.5 million of class B floating-rate notes at Libor plus 275 bps; $38.25 million of class C floating-rate notes at Libor plus 320 bps; $36.5 million of class D floating-rate notes at Libor plus 450 bps; $6.75 million of class E floating-rate notes at Libor plus 490 bps and $50.106 million of subordinated notes.

Wells Fargo Securities, LLC was the underwriter.

The transaction is backed primarily by broadly syndicated senior secured corporate loans.

Apollo Credit Management, a subsidiary of New York City-based Apollo Global Management, LLC, will manage the CLO.

The proceeds will be used to repay parties that provided interim financing, which allows the issuer to purchase collateral prior to the closing date, and to purchase assets to reach a target portfolio of about $600 million of leveraged loans.

Apollo was last in the market in August when it priced the $857.06 million ALM VII(R), Ltd./ALM VII(R), LLC CLO and the $932.22 million ALM VII(R)-2, Ltd./ALM VII(R)-2, LLC CLO transactions.

MP sells Gallatin CLO VI

MP Senior Credit Partners sold about $425 million of notes due Jan. 15, 2025 in the Gallatin CLO VI 2013-2 transaction, according to market sources.

The CLO priced $3.75 million of class X senior secured floating-rate notes (//AAA) at Libor plus 110 bps; $215,625,000 of class A-1 senior secured floating-rate notes (//AAA) at Libor plus 145 bps; $50 million of class A-2 loans (//AAA/) at Libor plus 145 bps; $57,375,000 of class B senior secured floating-rate notes (//AA) at Libor plus 200 bps; $19.65 million of 3% class C fixed-rate notes (//A); $21.25 million of 3.5% class D fixed-rate notes and $21.25 million of 6.4% class E fixed-rate notes (//BB) and about $36.1 million of subordinated notes.

The class A-2 loan will be issued when the deal closes and will include an option to be converted into class A-2 notes.

Underwriter details were not immediately available.

The issue is backed primarily by broadly syndicated first-lien senior secured corporate loans.

MP Senior Credit Partners, a New York City-based investment firm, will manage the CLO.

Proceeds from the deal will be used to purchase a portfolio of about $425 million of primarily leveraged loans.

The firm, which formed in 2012 as a joint venture between UrsaMine Credit Advisors LLC and MatlinPatterson Asset Management LP, closed in July on the $300.25 million Gallatin CLO V 2013-1, Ltd./Gallatin CLO V 2013-1 LLC transaction.

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