PGIM continues to add to U.S., European CLO pipelines

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PGIM is preparing to issue simultaneous CLOs in the U.S. and European markets this month through its affiliates, building on the global asset manager’s heavy 2018 deal-printing schedule.

According to presale reports from Moody’s Investors Service and Fitch Ratings, PGIM Inc. is marketing a $509.5 million Dryden 61 CLO transaction in the states, while PGIM's London affiliate is prepping a €411 million Dryden 66 Euro CLO portfolio.

Dryden 61 is expected to price at a spread of 117 basis points over three-month Libor for the $315 million AAA-rated stack, according to Fitch Ratings. The deal will have a 5.1-year reinvestment period and a 2.1-year noncall. Dryden 61 represents PGIM’s seventh primary U.S. CLO portfolio this year, and brings its year-to-date volume in new-issue portfolios to $3.48 billion.

Dryden 66 will be the fourth European CLO sponsored by PGIM Ltd. in London. The new deal is to price at 96 basis points over three-month Euribor for a €238 million tranche of Class A notes, according to Fitch.

The two deals will add to a brisk start to November volume in both markets. According to JPMorgan, six U.S CLOs have priced totaling $2.9 billion, while three European CLOs have priced totaling €1.2 billion.

October’s issuance numbers were 52 U.S. CLOs totaling $25.7 billion and 10 Euro CLOs have priced totaling €3.9 billion.

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