| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Dryden 37 Senior Loan Fund/Dryden 37 Senior Loan Fund LLC > News item |
Prudential brings $509.05 million; primary off to ‘sluggish start,’ on track for busy year
By Cristal Cody
Tupelo, Miss., Jan. 30 – Prudential Investment Management, Inc. continued the week’s CLO primary action with a $509.05 million deal, a market source said on Friday.
More than $2 billion of CLOs have priced over the month, according to data compiled by Prospect News.
Although CLO primary activity got off to a “sluggish start” in January, issuance is expected to be strong for the year, according to Barclays on Friday.
“Despite the slow start to the year in CLO issuance, we continue to anticipate a healthy year of supply,” Barclays analysts said in a market note.
Barclays forecasts $100 billion to $120 billion of U.S. CLO issuance in 2015.
CLO AAAs at 153 bps spread
Prudential Investment Management priced $509.05 million of notes due April 15, 2027 in the Dryden 37 Senior Loan Fund/Dryden 37 Senior Loan Fund LLC CLO deal, a source said.
The CLO sold $320 million of class A floating-rate notes at Libor plus 153 basis points at the top of the capital structure.
The CLO priced $8.75 million of class F floating-rate notes at Libor plus 640 bps at the bottom of the stack.
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.
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 transaction on Nov. 7.
The firm is the primary asset management arm of Newark, N.J.-based Prudential Financial, Inc.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.