Regatta Loan Management prices $511.6 million CLO; September new issue supply picks up

By Cristal Cody

Tupelo, Miss., Sept. 18 – New CLO issuance remains steady in September with the refinancing pace slowing down, according to market sources on Monday.

Regatta Loan Management LLC priced $511.6 million of notes in a new CLO offering.

Also, Prudential Investment Management, Inc.’s asset management business PGIM, Inc. priced $510 million of notes in the new Dryden 54 Senior Loan Fund/Dryden 54 Senior Loan Fund LLC deal, a source said.

Goldman Sachs & Co. was the placement agent for PGIM’s fourth new CLO transaction of the year. Final pricing details were not immediately available.

Six new issue CLOs have priced so far in September, BofA Merrill Lynch analysts said in a research note released on Monday.

“Given strong demand, spread levels continue to hold in well even given the elevated supply,” the analysts said.

New issue volume totals more than $76 billion year to date, according to BofA Merrill Lynch.

Regatta VIII prices

Regatta Loan Management priced $511.6 million of notes due Oct. 17, 2030 in the Regatta VIII Funding Ltd./Regatta VIII Funding LLC CLO, according to market sources.

Regatta VIII Funding sold $322.5 million of the class A floating-rate notes at Libor plus 125 bps.

J.P. Morgan Securities LLC arranged the deal.

Proceeds from the offering will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.

Regatta Loan Management is a New York-based asset management firm.

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