Pramerica CLO guidance springs surprise
Price guidance on Pramerica Investment Management’s European collateralised loan obligation, Dryden XXVII CLO, startled securitisation professionals in London this week, with some seeing the suggested spread levels on the BB-rated bonds as low.
The Barclays-arranged CLO has a senior class A tranche split into fixed- and floating-rate segments. The 90m fixed-rate piece has an initial guidance in the 2.4% area. Guidance on the 79.5m class A floating-rate piece meanwhile is about 140 basis points above an expected benchmark of six-month Euribor.
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