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).”

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.

Wells Fargo Securities LLC is the placement agent.

Eaton Vance Management will manage the CLO.

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