Citigroup has offered to buy the Dryden VI-Leveraged Loan CDO 2004.
In an announcement, the bank said it is commencing separate cash tender offers to purchase the synthetic CLO’s liabilities, including the remainder of $41 million of equity (income notes due 2016). Citi currently holds $23.5 million of the equity in Dryden VI, which is equivalent to 57.3% of the total equity in the deal.
The bank has released an offer-sheet detailing its price for each of tranche (see below). The offer expires Aug. 19.
Dryden VI is among the few CLOs to issue fixed-rate notes. The class B-2s pay a coupon of 6.24%, and the C-2s also pay at a fixed rate of 7.47%, which is reflected in the fact the offers for these notes are slightly higher than their floating rate equivalent.
Earlier this month, the bank announced it was looking to buy up notes from Bryant Park CDO, another synthetic fund. In the case of Bryant Park, Citi noted that it held $11.5 million, roughly 30%, of the equity in that deal.