JPMorgan has raised a $304.9 million CLO for Prudential Investment Management, according to people familiar with the situation.

The fund, dubbed the Dryden XXII Senior Loan Fund, is Prudential’s first U.S. CLO since August 2008.

The CLO’s $195 million triple-A tranche printed at 152.5 bps over Libor, which represents a tighter spread than was originally expected. Presale reports released by Moody’s Investors Service and Standard & Poor’s from last month assumed a coupon of 160 bps and 155 bps, respectively.

A $405 million CLO priced by Bank of America Merrill Lynch for Sankaty Advisors in early November included a $251 million triple-A tranche with a coupon of Libor plus 160 bps.
Dryden XXII matures in December 2022. The CLO includes a two-year non-call period and a three-year reinvestment period.

The Moody’s presale report says the transaction will allow for a 5% limit on senior bonds and floating-rate notes, while a 7.5% bucket is available to invest in DIP loans, second-lien loans, senior unsecured loans and high yield bonds.

Other recent CLOs have been composed along tighter guidelines with exposure permitted to senior secured loans only

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