By Cristal Cody
Tupelo, Miss., Oct. 13 – Prudential Investment Management, Inc.’s asset management business, PGIM, Inc., priced $740.2 million of notes in a refinancing and reset of the vintage 2012 Dryden XXV Senior Loan Fund/Dryden XXV Senior Loan Fund LLC collateralized loan obligation deal, according to a market source and a notice of revised proposed supplemental indenture on Thursday.
The deal is a refinancing of notes that were refinanced in 2016.
The CLO sold $451 million of class A-RR floating-rate notes at Libor plus 90 basis points; $80.6 million of class B-RR floating-rate notes at Libor plus 135 bps; $56 million of class C-RR floating-rate notes at Libor plus 185 bps; $34.35 million class D-RR floating-rate notes at Libor plus 300 bps; $29.25 million of class E-RR floating-rate notes at Libor plus 582 bps and $89 million of subordinated notes.
Nomura Securities International, Inc. was the refinancing placement agent.
PGIM is the CLO manager.
The maturity on the CLO was extended to Oct. 15, 2027 from the original Jan. 15, 2025 maturity.
The CLO has a two-year non-call period and a five-year reinvestment period.
In the refinanced transaction that was priced on Oct. 5, 2016, the CLO sold $386.4 million of class A-R floating-rate notes at Libor plus 120 bps; $46 million of class B-1-R floating-rate notes at Libor plus 170 bps; $23 million of class B-2-R floating-rate notes at Libor plus 170 bps and $48 million class C-R floating-rate notes at Libor plus 250 bps. The original deal’s $29.4 million of class D notes and $25.2 million of class E notes remained outstanding.
In 2012, the CLO originally priced the class A notes at Libor plus 138 bps; the class B-1 notes at Libor plus 225 bps; the class B-2 fixed-rate notes with a 3.67% coupon and the class C notes at Libor plus 300 bps.
Proceeds from the transaction will be used to redeem the notes refinanced in 2016 and the original class D and E notes.
The deal is backed primarily by broadly syndicated senior secured loans.
PGIM has priced two new dollar-denominated CLOs and refinanced three transactions year to date.
Newark, N.J.-based Prudential Investment Management priced three U.S. CLOs and refinanced two vintage U.S. CLOs in 2016.
| Issuer: | Dryden XXV Senior Loan Fund/Dryden XXV Senior Loan Fund LLC
|
| Amount: | $740.2 million refinancing
|
| Maturity: | Oct. 15, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Nomura Securities International, Inc.
|
| Manager: | PGIM, Inc.
|
| Call feature: | Two years
|
| Settlement date: | Oct. 16
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-RR notes
|
| Amount: | $451 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 90 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-RR notes
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| Amount: | $80.6 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 135 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-RR notes
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| Amount: | $56 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 185 bps
|
| Ratings: | S&P: A
|
|
|
| Class D-RR notes
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| Amount: | $34.35 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 300 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-RR notes
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| Amount: | $29.25 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 582 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $89 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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