Prudential closes on €300 million Dryden XXVII Euro CLO 2013 offering

By Cristal Cody

Tupelo, Miss., May 13 - Prudential Financial Inc. said on Monday that the €300 million Dryden XXVII Euro CLO 2013 BV offering, the second collateralized loan obligation transaction to price in Europe since the financial crisis, has closed.

In addition, the CLO is the first transaction in which equity was fully syndicated, Prudential said in the release.

"We are proud to be among the first to help bring the European CLO market back to life following the financial crisis," Jonathan Butler, managing director and head of leveraged finance in Europe, said in the statement.

Dryden XXVII priced seven tranches of notes due June 25, 2025 in the deal.

The triple A-rated tranche of €79.5 million of class A-1B senior secured floating-rate notes (/AAA/AAA) priced at six-month Euribor plus 140 basis points, according to a market source.

The transaction allows for about 30% of the assets to pay a fixed-rate coupon, compared to a traditional industry average of about 5%, Prudential said.

Barclays Bank plc arranged the sale.

The CLO is managed by Prudential Fixed Income's leveraged finance arm in London, Pramerica Fixed Income. Prudential Fixed Income is the principal fixed income business of Newark, N.J.-based Prudential Financial, Inc.

The euro CLO is the sixth that has been issued under Prudential's Dryden brand in the last 17 months. Prudential manages $9.3 billion in CLO capital.

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