Credit Suisse and Mitsubishi UFJ Securities are raising a $413.4 million collateralized loan obligation for Prudential Investment Management, according to a person with knowledge of the transaction.
The CLO, Dryden XXIII Senior Loan Fund, is slated to include a $270.5 million triple-A-rated tranche; a $15 million (fixed) double-A-rated tranche; and a $28.75 million single-A-rated slice, none of which have firm price guidance yet, the person said.
Price talk on the other mezzanine tranches is as follows: a $19.75 million (floating) double-A-rated slice priced at Libor plus 290 basis points; a $20.25 million triple-B-rated piece at Libor plus 600 basis points; a $16.25 million double-B-rated piece at Libor plus 800; and a $9 million single-B-rated tranche at Libor plus 1000 basis points.
The deal is expected to print on Thursday. The fund will contain a minimum of 95% senior secured loans.
Meanwhile, Goldman Sachs has reportedly raised a $523 million CLO to be managed by Credit Suisse Asset Management.
The fund, Madison Park Funding IX, includes a $319 million triple-A-rated slice with a coupon of Libor plus 148 bps, an example of how triple-A pricing has widened back out, after tightening to around Libor plus 130 basis points in April and May.
There have been roughly $16 billion of CLOs backed by widely syndicated loans raised in the U.S. this year.