Garrison Investment sells $410.09 million CLO; Voya refinances; PGIM offers €418.8 million

By Cristal Cody

Eureka Springs, Sept. 12 – Garrison Investment Group, LP priced $410.09 million of notes in a new CLO.

The deal brings the month’s issuance to three CLO offerings to date, but several transactions in the deal pipeline are expected to price over the next couple of weeks, according to market sources.

PGIM Ltd. plans to price €418.8 million of notes in the previously announced Dryden 46 Euro CLO BV transaction.

In other market activity, details emerged for Voya Alternative Asset Management LLC’s refinancing transaction. Voya refinanced $371.2 million of notes in a vintage 2012 CLO.

The market has seen about $3 billion of refinanced transactions year to date, compared to $10.46 billion last year, according to BofA Merrill Lynch.

The rising Libor yield is helping CLO spreads, according to J.P. Morgan Securities LLC.

The three-month Libor yield was up 2 basis points from Friday to 85 bps on Monday.

“Our near-term expectation is for U.S. CLO AAA spreads to tighten,” the analysts said in a note released on Monday. “Technicals will remain strong, as anecdotally, the forward calendar is littered with refinancings and resets. Further, demand for senior CLO paper is steady and should be aided by rising Libor, which has contributed to a 22% rise in the current coupon of AAA CLOs in our index this year.”

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