Elmwood prices $501.5 million CLO; Sculptor sells euro CLO; PGIM refinances notes

By Cristal Cody

Tupelo, Miss., Dec. 11 – New dollar-denominated broadly syndicated CLO supply includes a $501.5 million transaction from Elmwood Asset Management LLC.

The deal is the manager’s fourth offering priced year to date.

In the European primary market, Sculptor Europe Loan Management Ltd. issued €315.75 million of notes in a new CLO.

Meanwhile, the refinancing space remains active.

Prudential Investment Management, Inc. affiliate PGIM, Inc. priced $616 million of notes in a third refinancing of a vintage 2014 CLO.

New issue supply year to date includes more than $78 billion of dollar-denominated CLOs and over €20 billion of euro-denominated broadly syndicated CLOs, according to market sources.

About $32 billion of vintage CLO notes have been refinanced year to date.

Elsewhere, leveraged loan funds saw $117 million of inflows over the past week ended Wednesday, compared to $9.2 million of outflows in the prior week, according to Fitch Ratings on Friday.

Year to date, net leveraged loan funds outflows total $20.7 billion.

High-grade secondary strong

Secondary market volume in high-grade CBO/CDO/CLO paper jumped to $941.23 million on Thursday, compared to $497.74 million on Wednesday, $500.01 million on Tuesday and $386.37 million on Monday, according to Trace.

Issue prices improved to a 99.60 average in the previous session from 98.90 on Wednesday and better than the 99.10 averages seen on Monday and Tuesday.

Trading volume in non-high-grade issues totaled $386.33 million on Thursday, compared to $139.37 million on Wednesday, $393.89 million on Tuesday and $257.45 million on Monday.

Non-high-grade CBO/CDO/CLO securities saw an 83.60 average price in Thursday’s session.

On Wednesday, securities averaged 87.90, while averaging 82.10 on Tuesday and 78.40 on Monday.

Elmwood CLO VII prices

Elmwood Asset Management priced $501.5 million of notes due Jan. 17, 2034 in the CLO, according to market sources.

Elmwood CLO VII Ltd. sold $300 million of class A floating-rate notes at Libor plus 139 basis points in the AAA-rated tranche.

RBC Capital Markets LLC was the placement agent.

The transaction is backed primarily by broadly syndicated first-lien senior secured loans, cash and eligible investments.

Elwood Asset Management has priced four new CLOs in 2020.

The hedge fund is based in New York.

Sculptor issues notes

Sculptor Europe Loan Management priced €315.75 million of notes in the Sculptor European CLO VII DAC transaction, according to market sources.

The CLO sold €186 million of the class A senior secured floating-rate notes at Euribor plus 110 bps.

Barclays was the placement agent.

The notes are due in January 2034.

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

The London-based firm is part of Sculptor Capital Management, Inc.

PGIM refinances

PGIM priced $616 million of notes due April 15, 2029 in a third refinancing of the vintage 2014 CLO deal, according to market sources.

Dryden 36 Senior Loan Fund/Dryden 36 Senior Loan Fund LLC priced $434 million of class A-R3 senior secured floating-rate notes at Libor plus 102 bps at the top of the capital stack.

Goldman Sachs & Co. was the refinancing agent.

The CLO was originally issued Dec. 9, 2014. It was first refinanced Dec. 21, 2016 and refinanced a second time on April 15, 2019.

In the second refinancing, the CLO priced $434 million of class A-R2 floating-rate notes at Libor plus 128 bps.

Prudential Investment Management is the primary asset management business of Newark, N.J.-based Prudential Financial Inc.

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