PGIM prices rare sterling CLO; Ares brings €463.15 million deal; euro CLO supply strong

By Cristal Cody

Tupelo, Miss., July 30 – Overseas CLO deal action remains busy in July with new euro- and sterling-denominated CLOs priced in the past week.

PGIM, Inc. sold £335.86 million of notes in a sterling-denominated CLO transaction on Friday.

One of the last reported sterling deals in the CLO primary market was on June 30, 2015 when Credit Suisse Asset Management Ltd. priced the €413.53 million equivalent of euro and sterling notes in the Cadogan Square CLO VI BV deal, according to a market source. The Cadogan Square notes were refinanced in August 2017 as all euro-denominated notes.

In the new European CLO, Ares European Loan Management LLP sold €463.15 million of notes.

CLO managers have priced more than €18.5 billion of euro-denominated CLOs in the new issue market year to date, according to a BofA Merrill Lynch research report released on Monday.

“Issuance in July 2018 alone has reached €4.5 [billion], making it one of the busiest months of issuance in the 2.0 era,” according to the note. “A further €12.2 [billion] of notes has priced from refinanced and reset deals so far this year.”

PGIM prices £335.86 million

PGIM priced £335,861,000 of notes due Oct. 15, 2032 in the CLO issue on Friday, according to additional details from a market source.

Dryden 63 GBP CLO 2018 BV sold £171 million of class A-1 senior secured floating-rate notes at Libor plus 125 basis points.

NatWest markets plc and GreensLedge Capital Markets Europe LLC were the underwriters.

The CLO is collateralized primarily by senior secured corporate loans and senior secured bonds.

PGIM is an investment management firm and part of Newark, N.J.-based Prudential Financial Inc.

Ares prices €463.15 million

Ares European Loan Management sold €463.15 million of notes due 2031 in the Ares European CLO X BV deal, according to a market source.

Ares European CLO X priced the class A senior secured floating-rate notes at Euribor plus 85 bps in the senior tranche.

Merrill Lynch International arranged the offering.

The notes are backed mainly by euro-denominated senior secured loans and senior secured bonds.

Ares European Loan Management is an asset management firm based in London.

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