Octagon sells $507.5 million CLO; PGIM prices $508.05 million new CLO, refinances notes

By Cristal Cody

Tupelo, Miss., July 3 – Octagon Credit Investors, LLC priced $507.5 million of notes in the manager’s second CLO deal of the year.

In other new issuance, details emerged on PGIM, Inc.’s new $508.05 million CLO deal set to close in July.

Also, PGIM was in the primary market with a $525.63 million refinancing and reset of a CLO that priced in January.

Year to date, about $62 billion of new CLOs have priced, while more than $22 billion of vintage CLOs have been refinanced, according to a BofA note.

Octagon prices 44 CLO

Octagon Credit Investors priced $507.5 million of notes due July 20, 2032 in the new CLO transaction, according to a market source.

Octagon Investment Partners 44, Ltd./Octagon Investment Partners 44, LLC sold $325 million of the class A floating-rate notes Libor plus 130 basis points.

Morgan Stanley & Co. LLC was the placement agent.

The transaction is backed primarily by first-lien senior secured corporate loans.

Octagon Credit Investors has priced four new CLOs year to date.

The New York-based non-high-grade corporate credit investment adviser is majority owned by Conning & Co.

PGIM brings new CLO

PGIM priced $508.05 million of notes due July 15, 2032 at par in its new issue CLO offering, according to a market source.

Dryden 68 CLO, Ltd./Dryden 68 CLO, LLC sold $325 million of the class A floating-rate notes at Libor plus 131 bps.

RBC Capital Markets, LLC was the placement agent.

The deal is backed primarily by broadly syndicated first-lien senior secured loans.

The investment management firm is a subsidiary of Newark, N.J.-based Prudential Financial Inc.

PGIM refinances Dryden 75

PGIM sold $525.63 million of notes in the refinancing and reset of a CLO offering that priced in January, according to a market source.

Dryden 75 CLO, Ltd./Dryden 75 CLO, LLC priced $341.25 million of the class A-R floating-rate notes at Libor plus 120 bps.

Jefferies LLC was the refinancing placement agent.

The maturity on the notes was extended to July 15, 2030 from the original Jan. 15, 2029 maturity.

The original CLO had a short non-call period scheduled to end on July 15 and a one-year reinvestment period.

The reset CLO has an extended one-year non-call period and an extended three-year reinvestment period.

In the original $428.79 million offering priced on Jan. 23 and issued Feb. 27, the CLO sold $286.88 million of the class A floating-rate notes at Libor plus 118 bps.

Proceeds will be used to redeem the original notes on July 15.

The CLO is backed primarily by broadly syndicated first-lien senior secured loans.

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