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.

PennantPark debuts

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.

GLG refinances

Man GLG Euro CLO II DAC partially refinanced a vintage CLO, originally issued under the name GLG Euro CLO II DAC.

Now maturing Jan. 15, 2030, GLG Partners refinanced €207 million of its class A-1-R notes and €17.7 million of its class C-R notes that were originally issued on Dec. 12, 2016.

With this reissuing, the issuer has extended the weighted average life by 12 months to what is now 6.32 years.

The underlying portfolio had been fully ramped previously; as of the closing date the portfolio par amount of €349,935,081 is lower than the transaction's target par amount given the previous default of two obligations from the same obligor in the portfolio.

Proceeds from the refinancing will be used to fully redeem the original class A-1 notes and class C notes.

GLG Partners is an alternative asset manager based in London.

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