PGIM brings Dryden 54 CLO; Benefit Street prices $646.4 million CLO refinancing, reset

By Cristal Cody

Tupelo, Miss., Sept. 20 – In new CLO supply, Prudential Investment Management, Inc. asset management business PGIM, Inc. priced a $510 million deal.

In other issuance, Benefit Street Partners LLC sold $646.4 million of notes in a refinancing and reset of a 2015 CLO.

More than $120 billion of U.S. CLOs have been refinanced or reset year to date, according to market sources. New issue volume totals more than $67 billion.

“Most investors seemed resigned to a near-term future of increased supply and increased demand,” Wells Fargo Securities, LLC analysts said in a note on Wednesday after attending a structured finance industry conference earlier in the week.

Moody’s Investors Service said in its August CLO report that reset and new issuance activity was dominating the market while refinancing volume has fallen from an April peak.

PGIM prices $510 million

PGIM priced $510 million of notes due Oct. 19, 2029 in the Dryden 54 Senior Loan Fund/Dryden 54 Senior Loan Fund LLC deal, according to a market source.

The CLO sold $320 million of class A floating-rate notes at a discount margin of Libor plus 120 basis points in the senior tranche.

Goldman Sachs & Co. was the placement agent.

PGIM has priced four new dollar-denominated CLOs year to date.

Newark, N.J.-based Prudential Investment Management priced three U.S. CLOs and refinanced two vintage U.S. CLOs in 2016.

Benefit Street CLO VI resets

Benefit Street Partners priced $646,495,265 of notes in the refinancing and reset of a 2015 vintage CLO, according to a notice of executed first supplemental indenture on Friday.

Benefit Street Partners CLO VI Ltd./Benefit Street Partners CLO VI LLC sold $399.22 million of class A-1-R senior secured floating-rate notes at Libor plus 124 bps at the top of the capital structure.

Wells Fargo Securities, LLC was the refinancing placement agent.

The maturity on the refinanced notes was extended to Oct. 18, 2029 from the original April 18, 2027 maturity.

In the original $611.49 million CLO priced on March 6, 2016, the CLO sold $354.25 million of class A-1a floating-rate notes at Libor plus 155 bps.

Benefit Street Partners has priced one new CLO and refinanced four vintage CLOs year to date.

The CLO manager priced one new CLO and refinanced one vintage CLO transaction in 2016.

The credit investment arm of Providence Equity Partners LLC is based in New York City.

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