PGIM, Benefit Street, NewMark refinance CLOs; refinancings make up bulk of February volume

By Cristal Cody

Tupelo, Miss., March 6 – Three CLO managers kicked March off by refinancing vintage 2014 CLOs.

Prudential Investment Management, Inc. affiliate PGIM, Inc. refinanced $564.5 million of notes.

Benefit Street Partners LLC sold $412.5 million in a refinancing of its vintage CLO.

NewMark Capital LLC refinanced $320.08 million of fixed- and floating-rate notes in eight tranches.

Refinancing volume continues to outpace new issuance year to date.

February saw $26.5 billion of deal volume with 70% of supply from refinancings, according to a J.P. Morgan Securities LLC market note released on Monday.

Refinancing volume year to date is nearly $28 billion, according to the note. New 2017 issuance totals about $9 billion to date.

“Demand for shorter paper such as refis is being driven by all-in yield focused investors including asset managers and insurance and buyers in general who see value,” J.P. Morgan Securities analysts said in the note. “We believe this shift has helped to drive the refi wave over the last six months, with yield-focused investors seeing the short end of the CLO senior term curve as cheap with small spread give-up versus the all-in coupon relative to new issue.”

PGIM refinances CLO

PGIM refinanced $564.5 million of notes due Oct. 15, 2026 in the Dryden 34 Senior Loan Fund CLO deal, according to a market source.

The vintage 2014 CLO priced $409.5 million of class A-R floating-rate notes at Libor plus 116 basis points in the senior tranche.

Deutsche Bank Securities Inc. was the refinancing agent.

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

Prudential Investment Management priced three U.S. CLOs and refinanced two vintage U.S. CLOs in 2016.

PGIM is the primary investment management business of Newark, N.J.-based Prudential Financial Inc.

Benefit Street refinances

Benefit Street Partners priced $412.5 million of notes due Oct. 20, 2026 in a refinancing of a 2014 broadly syndicated CLO, according to a market source.

Benefit Street Partners CLO V Ltd./Benefit Street Partners CLO V LLC sold $317.5 million of class A-R floating-rate notes at Libor plus 120 bps in the AAA-rated tranche.

Deutsche Bank Securities Inc. arranged the offering.

The CLO manager priced one new CLO and refinanced one vintage CLO transaction in 2016.

The credit investment arm of Providence Equity Partners LLC is based in New York City.

NewMark refinances CLO

NewMark Capital refinanced $320.08 million of notes due June 30, 2026 in a vintage 2014 deal, according to details from a market source.

NewMark Capital Funding 2014-2 CLO Ltd. priced $195.75 million of class A-1-R floating-rate notes at Libor plus 144 bps at the top of the capital stack.

Jefferies LLC was the refinancing agent.

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

NewMark Capital is a New York-based investment manager.

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