PGIM markets Dryden 46 Euro CLO; deal pipeline fills; secondary trading volume climbs

By Cristal Cody

Eureka Springs, Ark., Sept. 9 – PGIM Ltd. is organizing the Dryden 46 Euro CLO BV transaction for the primary market following the opening of a warehouse for the deal in July, according to a market source on Friday.

September CLO primary action is predicted to be heavy, sources report.

CLO managers including Ares Management LP, Symphony Asset Management LLC and Credit Suisse Asset Management, LLC are expected to tap the U.S. primary market soon.

Ares Management plans to price $606 million of notes in the Ares XL CLO Ltd./Ares XL CLO LLC deal via Goldman Sachs & Co.

Symphony Asset Management is in the pipeline with a $500 million CLO via BofA Merrill Lynch.

Credit Suisse Asset Management is offering $600 million of notes in a new CLO transaction. Wells Fargo Securities, LLC is the placement agent.

Year to date, $40.42 billion of U.S. CLOs and €10.6 billion of euro-denominated CLOs have priced, according to Prospect News data.

CLO secondary market trading climbed over the past two sessions.

On Thursday, 38 high-grade CBO/CDO/CLO issues totaling $219.21 million and 27 non-investment-grade CBO/CDO/CLO securities totaling $117.54 million traded, according to Trace.

During Wednesday’s session, $380.5 million traded in 62 investment-grade securities and $92.7 million traded in 29 non-investment-grade securities.

Both volumes are up from Tuesday when $53.4 million traded in 10 high-grade CBO/CDO/CLO issues and $50.15 million traded in 16 non-investment-grade CBO/CDO/CLO securities.

PGIM preps CLO

PGIM plans to price nine tranches of notes due Jan. 15, 2030 in the Dryden 46 Euro CLO BV transaction, according to a market source.

The deal is expected to include class A-1 floating-rate notes, class A-2 fixed-rate notes, class B-1 floating-rate notes, class B-2 fixed-rate notes, class C floating-rate notes, class D floating-rate notes, class E floating-rate notes, class F floating-rate notes and subordinated notes as equity.

Barclays is the placement agent.

PGIM’s warehouse for the transaction included a senior funding facility (DBRS: A) and a mezzanine funding facility (DBRS: BBB) with a maximum warehouse of €300 million. The warehouse has a 12-month reinvestment period and a termination date of June 2031.

The offering is expected to close on Nov. 4.

PGIM was last in the primary market with the €412.9 million Dryden 44 Euro CLO 2015 BV transaction on April 29.

The affiliate of Prudential Financial Inc. is based in London.

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