Goldman markets Dryden inside Spire deal
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Goldman markets Dryden inside Spire deal

Goldman Sachs is marketing senior notes in Pramerica’s Dryden 35 Euro CLO at 130bp, tighter than the 135bp level pegged for Deutsche for price thoughts on Spire Partner’s Aurium CLO I, but in line with Carlyle’s market-opening trade last week.

Pricing on the deal is expected to be on Friday, at the maximum size of €442.6m, increased from the €416.6m originally announced on Tuesday. Books are now closed on the deal.

Dryden 35 is much larger than Spire’s €308m deal, but Pramerica may benefit from familiarity — it was the second issuer into the European market when it re-opened, with Dryden XXVII in May 2013 via Barclays, and has since returned with the €414.75m Dryden 29 via BAML in December 2013 and the €416.7m Dryden 32 via Barclays in July 2014 before marketing Dryden 35.

After Dryden XXVII, which was 4.8 times levered, leverage in subsequent deals shot up to 9.6x and 9.8x. The new deal is 9.3 times levered, with a two year non-call and four year reinvestment period. Risk retention is through a vertical slice. 

All the tranches have come in at the tight end of guidance.

The 'B-1A' notes are at 205bp from 205bp-210bp guidance, the 'C' notes at 315bp from 315bp, and the 'D' notes at 410bp from 410bp-415bp. The fixed rate 'A-1B' and 'B1-B' notes are listed as “call desk”, as are the class 'E' and 'F' junior mezzanine classes. The equity is not being marketed, in contrast to Spire’s deal.

Some of the portfolio in the warehouse for Dryden 35 comes from the redemption of a previous Pramerica CLO, with the transfer of the assets at market mid-price.

Senior funding for the warehouse is provided by Goldman Sachs, and junior funding by the likely investor in the equity, whose identity is not disclosed in deal documents.

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