PGIM prices $509.35 million; Angelo Gordon brings new CLO; leveraged loans log outflows

By Cristal Cody

Tupelo, Miss., Nov. 2 – PGIM, Inc. came to the primary market with a new $509.35 million CLO offering.

The deal is the CLO manager’s seventh U.S. dollar-denominated CLO transaction priced this year.

Angelo, Gordon & Co., LP also priced $502.6 million of notes in a new CLO.

More than $100 billion of new issue CLOs have priced year to date, according to market sources.

In other market activity, leveraged loans reported a $790 million outflow this week in the largest outflow since December 2015 after a flat reading in the previous week, according to a BofA Merrill Lynch research note released on Friday.

Fitch Ratings said in a report on Friday that on the demand side there were big outflows from both leveraged loan and high-yield bond funds over the past week.

Investors “pulled $1.5 billion from loan ETFs and mutual funds, the largest weekly draw since the end of 2015,” Fitch said. “The Invesco Senior Loan ETF, the largest in its category, had its largest one-day outflow since inception on Oct. 26.”

Loan ETFs altogether lost about $700 million for the week, Fitch said.

PGIM brings Dryden 61

PGIM priced $509.35 million of notes due Jan. 17, 2032 in the new CLO deal, according to a market source on Friday.

Dryden 61 CLO, Ltd. sold $315 million of class A-1 floating-rate notes at Libor plus 116 basis points at the top of the capital structure.

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

The CLO is backed primarily by first-lien senior secured loans.

Year to date, PGIM has priced seven new U.S. dollar-denominated CLOs.

The investment management firm is part of Newark, N.J.-based Prudential Financial Inc.

Angelo Gordon prices

Angelo Gordon priced $502.6 million of notes due Nov. 13, 2031 in the Northwoods Capital XIV-B, Ltd./Northwoods Capital XIV-B, LLC transaction, according to a market source.

The CLO sold $320 million of the class A floating-rate notes at Libor plus 130 bps.

Barclays arranged the transaction.

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

Angelo Gordon is an alternative investment manager based in New York.

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