Pramerica brings euro CLO; Blackstone/GSO plans €413.25 million deal; Eaton Vance on tap

By Cristal Cody

Tupelo, Miss., June 26 – Total global CLO issuance is nearing $60 billion with expectations for the yearly total to surpass $100 billion, according to market sources on Thursday.

In the European primary market, Pramerica Investment Management Ltd. raised €416.7 million in a CLO offering on Thursday, according to a market source.

Pramerica placed the AAA floating-rate tranche of notes at Euribor plus 140 basis points, on the tight side of European issuance in 2014.

The European market also is expected to see a €413.25 million deal from Blackstone/GSO Debt Funds Management Europe Ltd., according to a market source.

In the U.S. pipeline, details of a long-expected offering from Eaton Vance Management emerged on Thursday. The firm plans to bring a $511.87 million CLO transaction, a source said.

“Following a tepid start to 2014, new CLO issuance has jumped significantly of late, prompting market experts to alter forecasts,” Fitch Ratings said in a news release on Thursday. “CLO issuance for 2014 to date now stands at roughly $58 billion as of the end of June, with some experts now predicting issuance to top $100 billion for the year (versus $85 billion for 2013).”

Pramerica prices CLO

Pramerica Investment Management priced €416.7 million of notes due Aug. 24, 2026 in the Dryden 32 Euro CLO 2014 BV deal, according to a market source.

Dryden 32 sold €199.25 million of class A-1A senior secured floating-rate notes at par with a coupon of Euribor plus 140 bps and €31 million of 2.25% class A-1B senior secured fixed-rate notes at par.

The CLO priced €18.42 million of class B-1A senior secured floating-rate notes at par with a coupon of Euribor plus 200 bps; €31.58 million of 3.0375% class B-1B senior secured fixed-rate notes at par; €32 million of class C deferrable floating-rate notes at 98.42 with a coupon of Euribor plus 250 bps; €22 million of class D deferrable floating-rate notes at par with a coupon of Euribor plus 360 bps; €26 million of class E deferrable floating-rate notes at 93.25 with a coupon of Euribor plus 480 bps and €17 million of class F deferrable floating-rate notes at 92.15 with a coupon of Euribor plus 555 bps.

The deal included €39.45 million of subordinated notes in the equity tranche.

Barclays Bank plc was the placement agent.

Pramerica Investment Management will manage the CLO and retain 5% of the transaction.

The portfolio is backed primarily by senior secured loans and bonds.

Pramerica Investment Management, the London-based leveraged finance arm of Newark, N.J.-based Prudential Financial, Inc., priced two European CLO deals in 2013.

Blackstone/GSO preps CLO

Blackstone/GSO Debt Funds Management Europe intends to price €413.25 million of notes due 2027 in a European CLO deal, according to a market source.

The Phoenix Park CLO Ltd. offering includes €236 million of class A-1 senior secured floating-rate notes (Aaa); €47 million of class A-2 senior secured floating-rate notes (Aa2); €24 million of class B senior secured deferrable floating-rate notes (A2); €23 million of class C senior secured deferrable floating-rate notes (Baa2); €24 million of class D senior secured deferrable floating-rate notes (Ba2) and €14 million of class E senior secured deferrable floating-rate notes (B2).

The deal will include a €45.25 million subordinated note equity tranche.

BofA Merrill Lynch is the placement agent.

Blackstone/GSO Debt Funds Management will manage the CLO.

The portfolio is collateralized primarily by secured senior obligations.

Blackstone/GSO Debt Funds Management last priced a European CLO deal on April 3 when it brought the €513,625,000 Holland Park CLO Ltd. transaction.

The subsidiary of asset manager GSO Capital Partners LP priced three European CLOs in 2013.

Eaton Vance plans deal

Eaton Vance Management plans to price $511.87 million of notes due 2026 in the Eaton Vance CLO 2014-1, Ltd./Eaton Vance CLO 2014-1 LLC transaction, according to a market source.

The CLO is expected to offer $315.5 million of class A floating-rate notes (//AAA/); $63 million of class B floating-rate notes; $29.75 million of class C floating-rate notes; $27 million of class D floating-rate notes; $28.5 million of class E floating-rate notes and $48.12 million of subordinated notes.

Wells Fargo Securities LLC is the placement agent.

Eaton Vance Management will manage the CLO.

Collateral consists primarily of first-lien senior secured loans.

Proceeds from the offering will be used to purchase a portfolio of leveraged loans.

Boston-based Eaton Vance Management, a subsidiary of Eaton Vance Corp., priced one CLO deal in 2013.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.