PennantPark debuts, GLG partially refinances CLO; non-high-grade prices head lower

Chicago, Aug. 23 – In the CLO primary market, PennantPark Investment Advisers LLC priced $301.4 million in a middle-market collateralized loan obligation.

Meanwhile, GLG Partners LP refinanced two classes of notes under its 2016 vintage CLO.

In the secondary market, Thursday’s session included some active trading of CBO/CDO/CLO securities.

The session included $300.76 million of investment-grade securities and $55.7 million of non-high-grade securities.

The investment-grade securities had an average trading price of 98.60, in line with prices earlier in the week.

The non-high-grade average price was 89.1, down from earlier in the week. The week started with an average trading price of 93.5.

In a debut offering, or the first managed CLO by PennantPark that S&P Global Ratings has rated, the issuer priced $301.4 million in a middle-market CLO.

Pricing in nine tranches, the transaction is backed by at least 95% of senior secured loans, cash and eligible investments with a minimum of 85% of the loan issuers required to be in the United States.

According to the presale report, a maximum of 15% of the loans can be covenant-lite.

PennantPark, founded in 2007, had $3 billion in total assets under management as of March 31. The firm is based in New York, with offices in Chicago, Houston, Los Angeles and London.

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