Prudential prices $611.92 million; DFG refinances; CLO volume rises to $66 billion-plus

By Cristal Cody

Tupelo, Miss., July 15 – CLO issuance in July includes a new deal from Prudential Investment Management, Inc., bringing year-to-date issuance to more than $66 billion, according to market sources and Prospect News data.

Prudential Investment Management priced $611.92 million of notes in the firm’s third U.S. dollar deal of the year.

The CLO refinancing also saw some new activity from DFG Investment Advisors, Inc., which refinanced $281.9 million of notes and loans.

Prudential prices CLO

Prudential Investment Management priced $611.92 million of notes due Aug. 15, 2028 in the Dryden 40 Senior Loan Fund/Dryden 40 Senior Loan Fund LLC deal, according to a market source.

The CLO sold $379 million of class A floating-rate notes at Libor plus 140 basis points at the top of the capital stack.

Wells Fargo Securities LLC was the placement agent.

The CLO has a two-year non-call period and a five-year reinvestment period.

Collateral consists of broadly syndicated first-lien senior secured corporate loans.

Proceeds from the deal will be used to purchase a portfolio of about $600 million of leveraged loans.

Prudential has priced three U.S. dollar-denominated CLOs year to date.

The primary asset management business of Newark, N.J.-based Prudential Financial, Inc., brought three U.S. CLO transactions in 2014.

DFG refinances $281.9 million

DFG Investment Advisors refinanced $281.9 million of notes and loans due July 17, 2024 in a vintage 2013 CLO transaction, according to a market source.

Vibrant CLO Ltd. sold $100 million of class A-1AR senior secured floating-rate notes at Libor plus 134 bps and $91.85 million of class A-1L senior secured floating-rate loans at Libor plus 134 bps in the senior tranches.

The original $191.85 million offering of class A-1 floating-rate notes priced at Libor plus 148 bps.

Citigroup Global Markets Inc. arranged the refinancing.

DFG Investment Advisors is the CLO manager.

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

The proceeds from the refinancing will be used to redeem the original notes.

DFG Investment Advisors was in the primary market in February with the $414.3 million Vibrant CLO III Ltd./Vibrant CLO III LLC deal.

The money manager is based in New York.

© 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.