Jefferies has priced the €409.4 million Sound Point Euro CLO V Funding for Sound Point, which sets a new pandemic-era benchmark low for triple-A spreads, at 77 basis points.

Details are as follows:

The class B-2 notes will be fixed at 1.85% until July 25, 2026, when the coupon will switch to E+150 bps, with a 0% Euribor floor capped at 2.5%. The C-2 notes will pay E+280 bps with no floor until July 25, 2023, when the coupon will switch to E+225 bps with a 0% floor.

The deal, which is expected to settle on May 5, has a non-call period ending May 5, 2023, and a reinvestment period ending July 25, 2026. The weighted average life test date is July 25, 2030, while the legal final maturity is July 25, 2035.

The manager as originator will retain a vertical strip to comply with EU risk retention requirements.

Sound Point printed two new-issue European CLOs in 2020, the last of which was the €340 million Sound Point Euro CLO IV via Citi in October. The latest print takes the year-to-date European CLO volume and deal count to €5.38 billion from 14 deals, versus €5.43 billion from 13 deals in the same period in 2020, according to LCD data.