By Cristal Cody
Tupelo, Miss., Jan. 30 – Prudential Investment Management, Inc. priced $509.05 million of notes due April 15, 2027 in a collateralized loan obligation deal, according to a market source on Friday.
Dryden 37 Senior Loan Fund/Dryden 37 Senior Loan Fund LLC sold $320 million of class A floating-rate notes at Libor plus 153 basis points; $62.3 million of class B floating-rate notes at Libor plus 225 bps; $22.2 million of class C floating-rate notes at Libor plus 325 bps; $31.1 million of class D floating-rate notes at Libor plus 370 bps; $25.65 million of class E floating-rate notes at Libor plus 540 bps; $8.75 million of class F floating-rate notes at Libor plus 640 bps and $39.05 million of subordinated notes.
J.P. Morgan Securities LLC arranged the transaction.
Prudential Investment Management will manage the CLO, which is backed mainly by broadly syndicated first-lien senior secured corporate loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $500 million of leveraged loans.
Prudential priced three U.S. CLO deals in 2014, including the $609.3 million Dryden 36 Senior Loan Fund/Dryden 36 Senior Loan Fund LLC deal on Nov. 7.
The firm is the primary asset management arm of Newark, N.J.-based Prudential Financial, Inc.
| Issuer: | Dryden 37 Senior Loan Fund/Dryden 37 Senior Loan Fund LLC
|
| Amount: | $509.05 million
|
| Maturity: | April 15, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Prudential Investment Management, Inc.
|
| Call feature: | 2017
|
| Pricing date: | Jan. 30
|
| Settlement date: | March 12
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $320 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 153 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $62.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $22.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $31.1 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $25.65 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 540 bps
|
| Ratings: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $8.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 640 bps
|
| Ratings: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $39.05 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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