Partners sells $301.3 million CLO; Guggenheim prices €281.65 million; euro ratings steady

By Cristal Cody

Tupelo, Miss., May 13 – Partners Group US Management CLO LLC priced $301.3 million of notes in a quick-to-market CLO offering.

The deal is the manager’s second broadly syndicated CLO transaction year to date.

The CLO has a one-year non-call period and a one-year reinvestment period.

Guggenheim Partners Europe Ltd. tapped the European primary market with a new €281.65 million broadly syndicated CLO, also with a short one-year non-call period and a one-year reinvestment period.

The primary market is slowly reopening after issuance came to a standstill in March from the pandemic and related shutdowns.

Meanwhile, ratings downgrades continued for dollar-denominated CLOs this past week, while euro tranches held fast.

Since March, S&P Global Ratings has put 392 U.S. CLO tranches on watch negative, Moody’s Investors Service has put 859 U.S. CLO tranches on review for downgrade, and Fitch Ratings has put 25 U.S. CLO tranches on rating watch negative, according to a Wells Fargo Securities, LLC note on Wednesday.

“No new euro CLO tranches have been placed on review for downgrade by the major rating agencies in the past week,” the Wells Fargo analysts said. “The count since March remains at 18 euro CLO tranches on watch negative by S&P, 117 euro CLO tranches on review for downgrade by Moody’s, and 225 euro CLO tranches on rating watch negative by Fitch.”

Pikes Peak CLO 6 prints

Partners Group US Management CLO priced $301.3 million of notes due Aug. 18, 2030 in the manager’s second broadly syndicated CLO offering of the year, according to a market source.

Pikes Peak CLO 6, Ltd./Pikes Peak CLO 6, LLC sold $178 million of class A floating-rate notes at Libor plus 190 basis points in the AAA-rated tranche.

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

The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.

The global private markets investment management firm has U.S. offices in Denver, New York and Houston.

Guggenheim brings Bilbao CLO

Guggenheim Partners Europe priced €281.65 million of notes due May 20, 2031 in the new Bilbao CLO III DAC offering, according to market sources.

The CLO sold €154.25 million of class A-1 floating-rate notes at Euribor plus 144.4 bps at the top of the capital stack.

Citigroup Global Markets Ltd. was the placement agent.

The deal is collateralized primarily by broadly syndicated senior secured loans and bonds.

Guggenheim Partners Europe is a Dublin-based subsidiary of global asset manager Guggenheim Partners, LLC.

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