GoldenTree offers $453.3 million CLO; PGIM wraps deal; leverage loans post outflows

By Cristal Cody

Tupelo, Miss., April 24 – GoldenTree Loan Management LP plans to price $453.3 million of notes in the manager’s first new issue CLO deal of the year following a vintage refinancing transaction in February.

Meanwhile on Friday, PGIM, Inc. closed on its previously reported €411.6 million Dryden 74 Euro CLO 2020 DAC offering.

The CLO had priced €270 million of class A senior secured floating-rate notes at Euribor plus 78 basis points in the AAA-rated tranche.

Elsewhere, leveraged loans saw outflows of $440 million following a $220 million outflow a week earlier, according to a BofA Securities, Inc. note released Friday.

In the secondary market, prices were mixed over the week.

High-grade CBO/CDO/CLO paper averaged 90.4 on Thursday, compared to 91.60 on Wednesday, 90.20 on Tuesday and 88.20 on Monday, according to Trace data.

Average prices on lower-rated CBO/CDO/CLO securities were seen at 68.80 on Thursday, 67.70 on Wednesday, 66.50 on Tuesday and 69.60 on Monday.

High-grade trading volume on Thursday totaled $541.28 million, compared to $661.18 million on Wednesday, $309.03 million on Tuesday and $206.14 million on Monday.

During Thursday’s session, $102.81 million of non-high-grade CBO/CDO/CLO paper traded, versus $176.77 million on Wednesday, $139.83 million on Monday and $90.21 million on Tuesday.

GoldenTree on tap

GoldenTree Loan Management is offering $453.3 million of notes due April 20, 2031, according to market sources.

The GoldenTree Loan Management US CLO 7 Ltd./GoldenTree Loan Management US CLO 7 Inc. offering includes $267.75 million of class A floating-rate notes (AAA), $69.75 million of class B floating-rate notes (AA), $24.08 million of class C deferrable floating-rate notes (A), $28.8 million of class D deferrable floating-rate notes (BBB-), $14.85 million of class E deferrable floating-rate notes (BB-) and $48.1 million of subordinated notes.

Morgan Stanley & Co. LLC, BofA Securities, Inc. and Wells Fargo Securities LLC are the placement agents.

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

The CLO manager, part of New York City-based private investment firm GoldenTree Asset Management, LP, priced three new CLOs in 2019.

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