PGIM brings euro CLO reprint; Rockford Tower refinances; TCW reprices; loan outflows up

By Cristal Cody

Tupelo, Miss., Jan. 31 – PGIM, Inc. priced €397.2 million of notes in a second refinancing of a vintage euro-denominated CLO that closed on Friday.

Meanwhile, Rockford Tower Capital Management, LLC priced $431.55 million of notes in a refinancing of a vintage 2017 broadly syndicated CLO deal.

Also in the dollar space, the TCW Group successfully repriced five tranches of notes from the TCW CLO 2019-1 AMR, Ltd./TCW CLO 2019-1 AMR LLC transaction in the first auction for a CLO using an applicable margin reset feature on Thursday, according to market sources.

The CLO, managed by TCW Asset Management Co. LLC, was originally issued on Feb. 28, 2019.

The AMR feature is likely to be used more often going forward to refinance vintage CLOs, Moody’s Investor Service reports.

“In light of the successful auction and assuming any technological or operational issues are resolved with note settlement scheduled on 18 February, we expect to see more collateral managers using this feature going forward because refinancings via AMR are simpler and more cost-efficient than traditional refinancings,” Moody’s vice president Peter Hallenbeck said in an e-mailed statement.

“Refinancings in general are credit positive but benefits in some CLOs may be slightly offset by modifiers,” he said.

The CLO refinancing space has been active so far in 2020 in both the euro- and dollar-denominated markets.

Overall deal volume year to date totals $4.84 billion from 10 transactions, including $3.43 billion of dollar-denominated CLOs priced in eight offerings, Prospect News data shows.

Elsewhere, leveraged loan fund outflows rose to $661 million for the past week ended Wednesday, up from $14 million of outflows in the prior week, according to a Fitch Ratings report on Friday.

PGIM refinances

PGIM priced €397.2 million of notes in a second refinancing of the vintage euro-denominated CLO, according to market sources and notices to noteholders on Friday.

Dryden 35 Euro CLO 2014 BV sold €261.4 million of class A-R senior secured floating-rate notes at Euribor plus 98 basis points at the top of the capital stack.

Goldman Sachs International was the refinancing agent.

The maturity was extended to Jan. 17, 2033 from May 17, 2027.

PGIM issued the original €442.6 million transaction on March 31, 2015. The CLO had priced €232.1 million of class A-1A senior secured floating-rate notes at Euribor plus 130 bps and €15.8 million of 1.76% class A-1B senior secured fixed-rate notes in the senior tranches.

In the first €353.7 million refinancing issued May 16, 2017, the CLO sold €232.1 million of the class A-1A-R senior secured floating-rate notes at Euribor plus 95 bps and €15.8 million of 1.2% class A-1B-R senior secured fixed-rate notes.

The refinanced CLO is collateralized primarily by secured senior loans or senior secured bonds.

PGIM is an investment management firm and affiliate of Newark-based Prudential Financial Inc.

Rockford Tower reprices

Rockford Tower Capital Management priced $431.55 million of notes due April 15, 2029 in a refinancing of the Rockford Tower CLO 2017-1, Ltd./Rockford Tower CLO 2017-1, LLC transaction, according to a market source and a notice of proposed supplemental indenture on Thursday.

Rockford Tower CLO 2017-1 sold $319.8 million of class A-R floating-rate notes at Libor plus 103 bps in the AAA-rated tranche.

Citigroup Global Markets Inc. was the refinancing placement agent.

In the original $507 million offering issued on May 4, 2017, the CLO sold $319.8 million of the class A floating-rate notes at Libor plus 137 bps.

The CLO is collateralized primarily by broadly syndicated first-lien senior secured loans.

Rockford Tower Capital Management is a Delaware limited liability company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.