Partners Group, Permira price euro CLOs; Benefit Street, Allstate Investment close deals

By Cristal Cody

Tupelo, Miss., June 28 – Partners Group (UK) Management Ltd. priced €407.6 million of notes in a new euro-denominated CLO offering, its first deal since tapping the primary market in 2018.

Permira Debt Managers Group Holdings Ltd. also brought its first CLO offering of the year. The CLO manager priced €382.2 million of notes in the transaction.

Euro-denominated CLO volume year to date totals more than €10 billion, according to market sources.

In 2018, nearly €28 billion of European CLOs priced.

In the dollar-denominated primary market, Benefit Street Partners LLC closed Friday on a new $508.2 million CLO offering.

Allstate Investment Management Co. also sold $455.7 million of notes in a new broadly syndicated CLO deal that closed Friday.

More than $50 billion of new dollar-denominated broadly syndicated CLOs have priced year to date.

In other market activity, leveraged loans were the only sector to see outflows for the past week ended Wednesday, Yuri Seliger, a credit strategist with BofA Securities, said in a research note released on Friday.

“Investors bought bonds across major sectors, including high grade, high yield, government bonds, munis and mortgages,” Seliger said. “Leveraged loans were the only sector with outflows.”

Outflows from loans climbed to $680 million for the week ended Wednesday from $380 million in the previous week.

Partners brings Penta CLO 6

Partners Group (UK) Management priced €407.6 million of notes due July 2032 in the new Penta CLO 6 DAC offering, according to a market source.

At the top of the capital structure, Penta CLO 6 sold €248 million of class A senior secured floating-rate notes at Euribor plus 112 basis points, €23 million of class B-1 senior secured floating-rate notes at Euribor plus 187 bps and €15 million of 2.45% class B-2 senior secured fixed-rate notes.

BNP Paribas Securities Corp. was the placement agent.

The CLO is backed mainly by euro-denominated senior secured corporate loans and senior secured bonds.

The deal is the company’s first CLO offering of the year. Partners Group priced two broadly syndicated CLOs in 2018, including the €413.9 million Penta CLO 5 DAC transaction on Nov. 23, 2018.

The private markets investment manager is based in London.

Providus CLO III prints

Permira Debt Managers Group Holdings priced €382.2 million of notes due July 20, 2032 in its new euro-denominated CLO deal, according to a market source.

In the senior secured tranches, Providus CLO III DAC sold €232.5 million of class A floating-rate notes (Aaa//AAA) at Euribor plus 113 bps, €17.25 million of class B-1 floating-rate notes (Aa2//AA) at Euribor plus 190 bps and €16.5 million of 2.4% class B-2 fixed-rate notes (Aa2//AA).

Merrill Lynch International was the placement agent.

The broadly syndicated CLO is backed mainly by senior secured obligations.

The CLO manager was last in the primary market in 2018 with the €361.3 million Providus CLO II DAC transaction issued Dec. 20. Permira Debt Managers priced two euro-denominated CLOs last year.

The structured credit firm is based in London.

Benefit Street prices

Benefit Street Partners priced $508.2 million of notes due July 15, 2032 in its first CLO deal of the year, according to a market source.

Benefit Street Partners CLO XVII Ltd./Benefit Street Partners CLO XVII LLC sold $310 million of class A-1 floating-rate notes at Libor plus 138 bps and $10 million of class A-2 floating-rate notes at Libor plus 160 bps at the top of the capital stack.

Wells Fargo Securities, LLC was the placement agent.

The transaction is backed primarily by broadly syndicated senior secured loans.

The CLO manager has priced one new issue and one CLO refinancing year to date.

Benefit Street Partners priced three new CLO deals in 2018.

The credit investment arm of Providence Equity Partners LLC is based in New York City.

Allstate wraps CLO

Allstate Investment Management priced $455.7 million of notes due July 22, 2032 in its first broadly syndicated CLO deal in 2019, according to a market source.

Aimco CLO 10 Ltd./Aimco CLO 10 LLC sold $292.5 million of class A senior secured floating-rate notes at Libor plus 132 bps in the AAA-rated tranche.

Credit Suisse Securities (USA) LLC was the placement agent.

The offering is secured primarily by senior secured corporate loans.

Allstate Investment Management is a Northbrook, Ill.-based investment firm and subsidiary of Allstate Corp.

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