Garrison, Dryden, Carlyle price U.S., European CLO deals; St. Paul's European CLO on tap

By Cristal Cody

Tupelo, Miss., Sept. 18 - The Carlyle Group LP was back in the European CLO market with a €335.9 million collateralized loan obligation, Carlyle Global Market Strategies Euro CLO 2013-2, Ltd., according to an informed source on Wednesday.

The Carlyle Group brought its first European CLO, the €350 million Carlyle Global Market Strategies Euro CLO 2013-1 BV deal, in June.

Additional European CLO issuance is expected before the year is out, including a €300 million CLO from Avoca Capital Holdings and Intermediate Capital Group plc's St. Paul's CLO III Ltd. offering, sources said.

Carlyle Euro CLO 2013-2 sold

Carlyle Global Market Strategies Euro CLO 2013-2 sold eight tranches of notes due Sept. 28, 2026 in the transaction, according to an informed source.

The deal included €179 million of class A-1 notes (//AAA); €31.5 million of class A-2A notes (//AA); €19.9 million of class A-2B notes (//AA); €19.4 million of class B notes (//A); €18.8 million of class C notes (//BBB); €19.9 million of class D notes (//BB); €7.8 million of class E notes (//B-); and €39.6 million of subordinated notes.

Citigroup Global Markets Inc. was the placement agent.

CELF Advisors LLP, part of the Carlyle Group, will manage the CLO.

The proceeds will be used to purchase a €325 million portfolio of European leveraged loans and bonds.

Garrison Funding CLO prices

In the U.S. market on Wednesday, Garrison Capital Inc. announced that subsidiary Garrison Funding 2013-2, Ltd. priced a $350 million 10-year CLO in a private placement offering.

The CLO sold $50 million of class A-1R floating-rate notes (/expected AAA/) at par to yield 190 basis points plus the cost of funds; $111.2 million of class A-1T floating-rate notes (/expected AAA/) at 99.6 to yield Libor plus 180 bps; $24.2 million of class A-2 floating-rate notes (/expected AA/) at 99.5 to yield Libor plus 340 bps; $25 million of class B floating-rate notes (/expected A/) at 99.5 to yield Libor plus 465 bps and $139.6 million of subordinated notes, according to the release.

Garrison Capital will indirectly retain the equity tranche and $22 million of the class A-1T notes.

Garrison Capital, a New York-based business development company that primarily invests in loans to U.S.-based middle-market companies, will use the proceeds to refinance the company's existing credit facility.

Dryden 30 fund taps market

Also in the U.S. CLO market, Dryden 30 Senior Loan Fund/ Dryden 30 Senior Loan Fund LLC priced $516.4 million of notes due Oct. 15, 2025, sources said.

The CLO sold $312.15 million of class A senior secured floating-rate notes (Aaa) at Libor plus 125 bps; $64.75 million of class B senior secured floating-rate notes at Libor plus 175 bps; $39.25 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 285 bps; $24.25 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 320 bps; $20.75 million of class E junior secured deferrable floating-rate notes at Libor plus 500 bps; $12 million of class F junior secured deferrable floating-rate notes at Libor plus 550 bps; and $43.25 million of subordinated notes.

Credit Suisse Securities (USA) LLC was the underwriter.

Prudential Investment Management Inc. will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured corporate loans.

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