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