PGIM prices €409.8 million new CLO, refinances €364.02 million notes; Oaktree refinances

By Cristal Cody

Tupelo, Miss., May 22 – The European CLO market is seeing activity in the new issue and refinancing spaces.

PGIM, Inc. priced a €409.8 million new CLO transaction.

The CLO manager also sold €364.02 million of notes in a refinancing of a vintage 2016 European CLO.

At least two European CLO managers have refinanced vintage CLOs so far in May, a source said.

Oaktree Capital Management (UK) LLP priced €333 million of notes in a refinancing of the 2016 vintage Arbour CLO IV DAC transaction on May 16, according to a market source. Final pricing details were not immediately available. The €413.45 million transaction originally was brought to the primary market via Barclays on Sept. 30, 2016.

PGIM prices Dryden 69

PGIM priced €409.8 million of notes due in April 2032 in the new broadly syndicated CLO offering, according to a market source.

At the top of the capital structure, Dryden 69 Euro CLO 2018 BV sold €2 million of class X senior secured floating-rate notes at Euribor plus 44 basis points, €226.1 million of class A-1 senior secured floating-rate notes at Euribor plus 109 bps, €11.9 million of 1.25% class A-2 senior secured fixed-rate notes and €8 million of class A-3 senior secured floating-rate notes at Euribor plus 140 bps.

Deutsche Bank Securities Inc. was the placement agent.

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

PGIM reprints Dryden 46

PGIM sold €364.02 million of notes due Jan. 15, 2030 in the CLO refinancing, according to a market source.

In the AAA-rated tranches, Dryden 46 Euro CLO 2016 BV sold €236.5 million of class A-1-R senior secured floating-rate notes at Euribor plus 88 bps and €33.5 million of 1.25% class A-2-R senior secured fixed-rate notes.

Citigroup Global Markets Ltd. was the refinancing placement agent.

In the original €471.18 million transaction issued Oct. 28, 2016, the CLO sold €236.5 million of the class A-1 senior secured floating-rate notes at Euribor plus 118 bps and €33.5 million of 1.33% class A-2 senior secured fixed-rate notes.

Proceeds will be used to redeem the original notes.

The CLO is collateralized mainly by senior secured loans and bonds.

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