Sound Point prices €507.5 million CLO; supply rises; PGIM closes $646.75 million reset

By Cristal Cody

Tupelo, Miss., April 15 – Sound Point Capital Management LP affiliate Sound Point CLO C-MOA, LLC sold €507.5 million of notes in a new euro-denominated CLO offering.

New issue volume and secondary market activity has picked up in April in both the U.S. and European primary markets, sources said.

In the U.S. market last week, “there was strong supply of top-tier manager paper,” according to a BofA Merrill Lynch research note released on Monday.

“Following over $13 [billion] in supply over the last three weeks, YTD new issue volume now stands 2% higher than that at this point last year” at $35.7 billion, the note said. “We maintain our full year forecasts of $105 [billion] and $55 [billion] for new issue and refi/reset volume.”

In other action on Monday, Prudential Investment Management, Inc. affiliate PGIM, Inc. closed on its $646.75 million second refinancing of the vintage 2014 Dryden 36 Senior Loan Fund/Dryden 36 Senior Loan Fund LLC deal.

In its deal, Sound Point CLO C-MOA sold €507.5 million of notes due April 25, 2032 in the new Sound Point Euro CLO I Funding DAC transaction, according to market sources.

At the top of the capital stack, the CLO priced €310 million of class A floating-rate notes at Euribor plus 116 bps.

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