The European CLO triple-A benchmark dropped to Euribor+136bps on Friday as Partners Group priced a €436.875m deal, Penta CLO 17 via Citi.

That was 5bps inside the previous tightest print this year, with sources indicating par subordination on the tranche was 38%. The deal came a week after bullish sentiment swept over the Global ABS conference in Barcelona, and came in line with expectations of triple-A tightening.

The CLO also includes a triple-A delayed draw loan tranche, a feature Citi has used this year to reduce the negative cash drag at closing for CLO equity investors, while also allowing the manager time to ramp.

Unlike the typical single-B delayed draw tranches, triple-A delayed draw tranches are not optional and typically come into play at CLO closing. Previously, deals needed the tranche to be fully drawn within three months.

Down the capital structure, Penta CLO 17 printed tight across the stack. The CLO’s triple-B and double-B prints at E+325bps and E+600bps, for example, were the tightest for a new issue this year.

The CLO priced with a E+205.53bps cost of debt and is 10.62x levered.