JMP active; Pramerica taps Dryden XXVII Euro CLO, first to bring add-on; spreads stable

By Cristal Cody

Tupelo, Miss., Sept. 4 – JMP Credit Advisors LLC brought a $370.5 million collateralized loan obligation deal that had been in the pipeline since the start of the year, according to a market source on Thursday.

The JMP Credit Advisors CLO III Ltd./JMP Credit Advisors CLO III LLC vehicle priced $228 million of class A floating-rate notes at Libor plus 153 basis points at the top of the capital structure.

BNP Paribas Securities Corp. arranged the transaction.

The deal is the Alpharetta, Ga.-based investment banking and asset management firm’s first transaction this year. JMP previously was in the primary market in 2013 with the $343.8 million JMP Credit Advisors CLO II Ltd./JMP Credit Advisors CLO II LLC deal.

Pramerica reopens Dryden deal

In other primary activity, Pramerica Investment Management Ltd. priced a €194 million tap of the Dryden XXVII Euro CLO 2013 BV deal first brought in 2013, according to market sources.

Barclays Bank plc arranged the reopening.

The CLO is the “first European transaction among CLOs post financial crisis to tap their ability to issue additional notes,” Fitch Ratings Inc. said in a news release on Thursday.

Pramerica sold €300 million of fixed- and floating-rate notes due 2025 in the original transaction priced in April 2013.

“This additional issuance is not only more economical for the manager than issuing a new transaction, but it also demonstrates investor demand for shorter weighted average life issuance,” Fitch said. “Fitch expects that more managers will utilize this feature, specifically managers that are issuing fewer deals per year and yet see the opportunity to deploy additional capital.”

Pramerica planned to price between €150 million and €225 million in the add-on, according to an investor notice Pramerica released in August.

The issuance included an upsize of all of the original classes of notes and additional equity. Final pricing terms were not available by press time.

Pramerica Investment Management, the leveraged finance arm of Prudential Financial, Inc., is based in London.

Secondary quiet

CLO secondary activity has been fairly quiet to start the month, according to informed sources.

“Spreads haven’t moved very much,” one source said.

AAA-rated notes were quoted in the secondary market trading in the Libor plus 145 bps to Libor plus 155 bps area.

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