By Cristal Cody
Tupelo, Miss., July 15 – Prudential Investment Management, Inc. priced $611.92 million of notes due Aug. 15, 2028 in a collateralized loan obligation deal, according to a market source.
Dryden 40 Senior Loan Fund/Dryden 40 Senior Loan Fund LLC sold $379 million of class A floating-rate notes at Libor plus 140 basis points; $72 million of class B floating-rate notes at Libor plus 217 bps; $37.5 million of class C floating-rate notes at Libor plus 290 bps; $34 million of class D floating-rate notes at Libor plus 370 bps; $29.5 million of class E floating-rate notes at Libor plus 595 bps; $12.26 million of class F floating-rate notes at Libor plus 740 bps and $47.66 million of subordinated notes.
Wells Fargo Securities LLC was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
Collateral consists of broadly syndicated first-lien senior secured corporate loans.
Proceeds from the deal will be used to purchase a portfolio of about $600 million of leveraged loans.
Prudential has priced three dollar-denominated CLOs this year to date.
The primary asset management business of Newark, N.J.-based Prudential Financial, Inc. brought three U.S. CLO transactions in 2014.
| Issuer: | Dryden 40 Senior Loan Fund/Dryden 40 Senior Loan Fund LLC
|
| Amount: | $611.92 million
|
| Maturity: | Aug. 15, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | Prudential Investment Management, Inc.
|
| Call feature: | 2017
|
| Pricing date: | July 2
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $379 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa (expected)
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $72 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 217 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa2 (expected)
|
|
|
| Class C notes
|
| Amount: | $37.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Price: | Par
|
| Rating: | Moody’s: A2 (expected)
|
|
|
| Class D notes
|
| Amount: | $34 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Price: | 97.1168
|
| Rating: | Moody’s: Baa3 (expected)
|
|
|
| Class E notes
|
| Amount: | $29.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 595 bps
|
| Price: | 96.3659
|
| Rating: | Moody’s: Ba3 (expected)
|
|
|
| Class F notes
|
| Amount: | $12.26 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 740 bps
|
| Price: | 94.1125
|
| Rating: | Non-rated
|
|
|
| Equity
|
| Amount: | $47.66 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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