PineBridge Investments has priced its first collateralized loan obligation of the year.
The $408 million Galaxy XXIII CLO is also the first deal backed by broadly syndicated loans that complies with U.S. risk retention standards. It brings the firm’s total U.S. CLO assets under management to $4.7 billion.
The senior tranche of securities issued in the transaction, which is rated AAA by Standard & Poor’s pays three-month Libor plus 128 basis points.
The deal cannot be called for two years and, if not called, the portfolio can be actively managed for four years.
Morgan Stanley is the initial purchaser.
PineBridge has been a consistent participant in the CLO market since 2003. S&P did not specify how this deal complies with the new requirement for managers to keep 5% of the economic risk of deals, however the presale report notes that PineBridge has invested in the equity, or riskiest tranche, of each of the CLOs it manages. “It benefits from its multi-asset platform by having better access to the new issue market, as well as broadly based credit research,” the report states.