PGIM prices $740.2 million CLO reset; Octagon closes deal; CIFC offers $714 million new CLO

By Cristal Cody

Tupelo, Miss., Oct. 13 – Prudential Investment Management, Inc.’s asset management business, PGIM, Inc., priced $740.2 million of notes in a refinancing and reset of a vintage 2012 CLO that was partially refinanced in 2016.

In other reported market activity, Octagon Credit Investors, LLC closed on Tuesday on its previously announced $568 million refinancing of the vintage 2015 Octagon Investment Partners 24, Ltd./Octagon Investment Partners 24, LLC transaction.

Coming up, CIFC Asset Management LLC plans to price $714 million of notes in the firm’s fifth new CLO offering of the year.

CIFC was last in the primary market in August with the $814.41 million CIFC Funding 2017-IV Ltd./CIFC Funding 2017-IV LLC deal.

CLO managers have refinanced more than $120 billion of vintage CLOs and priced more than $70 billion of new CLOs year to date, according to market sources.

PGIM prices $740.2 million

PGIM priced $740.2 million of notes in a refinancing and reset of the vintage 2012 Dryden XXV Senior Loan Fund/Dryden XXV Senior Loan Fund LLC CLO deal, according to a market source and a notice of revised proposed supplemental indenture on Thursday.

The deal is a refinancing of notes that were refinanced in 2016.

The CLO sold $451 million of class A-RR floating-rate notes at Libor plus 90 basis points in the senior tranche.

Nomura Securities International, Inc. was the refinancing placement agent.

The maturity on the CLO was extended to Oct. 15, 2027 from the original Jan. 15, 2025 maturity.

Proceeds from the transaction will be used to redeem the notes refinanced in 2016 and the original class D and E notes.

PGIM has priced two new dollar-denominated CLOs and refinanced three transactions year to date.

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

CIFC offers $714 million

CIFC Asset Management plans to price $714 million of notes due November 2030 in the CIFC Funding 2017-V Ltd./CIFC Funding 2017-V LLC transaction, according to a market source.

The deal includes $455 million of class A-1 floating-rate notes (//AAA); $77 million of class A-2- floating-rate notes; $38.5 million of class B floating-rate notes; $42 million of class C floating-rate notes; $31.5 million of class D floating-rate notes and $70 million of subordinated notes.

Credit Suisse Securities (USA) LLC is the placement agent.

Proceeds will be used to purchase a portfolio of about $700 million of mostly first-lien senior secured leveraged loans.

CIFC Asset Management has priced four new CLOs and refinanced three vintage CLOs year to date.

The credit manager is based in New York.

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