Europe’s CLO primary active; PineBridge sells €411 million CLO; secondary strong

By Cristal Cody

Tupelo, Miss., March 21 – European CLO deal action continues to ramp up in March.

PineBridge Investments Europe Ltd. priced €411 million of notes in a new CLO offering via Euro-Galaxy VI CLO BV. In the offering, the issuer sold €245.5 million of class A senior secured floating-rate notes at Euribor plus 71 basis points in the senior tranche.

Morgan Stanley & Co. International plc was the placement agent.

BlackRock Investment Management (UK) Ltd. also plans to issue €413.5 million of notes due 2031 in the previously reported BlackRock European CLO V DAC transaction.

Euro-denominated CLO issuance and refinancings are expected to increase over the year.

Earlier in the month, BofA Merrill Lynch analysts raised their forecast to a post-financial crisis high of €22 billion to €25 billion in 2018, up from their previous forecast of €18 billion.

Other market strategists also had forecasted about €18 billion to €20 billion of new euro-denominated CLO volume for the year and about €24 billion of refinancing volume.

In 2017, about €20 billion of new euro-denominated CLOs priced, while another €23 billion of European existing CLOs were refinanced and/or reset.

Elsewhere in the secondary market, trading was heavy in high-grade CDO/CBO/CLO issues on Tuesday, according to Trace data. During the session, $322 million of issues traded, while another $77.11 million of lower-rated securities were traded.

© 2015 Prospect News.
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