Prudential Financial said today it has closed the Dryden XXIV Senior Loan Fund, its most recent CLO, at $522.5 million.
The deal is Prudential’s third under the Dryden brand in the last 10 months. It is collateralized primarily by broadly syndicated first-lien senior secured corporate loans. At least 90% of the portfolio must be invested in senior secured loans, and up to 10% of the portfolio may consist of secured bonds and senior secured floating rate notes and up to 5% of the portfolio may consist of non-senior secured loans and high yield bonds, according to a report issued by Moody’s Investors Service last week.
At closing, the portfolio was approximately 81% ramped and is expected to be 100% ramped within six months thereafter, Moody’s said.
Morgan Stanley underwrote the offering.
In a September presale report, the rating agency said it had a asssigned a 'AAA' rating on the senior most tranche of securities issued by the CLO; this tranche had an assumed coupon of Libor plus 143 basis points.
“This transaction demonstrates Prudential Fixed Income's commitment to this asset class as a manager and investor,” Brian Juliano, vice president and portfolio manager for Prudential Fixed Income's U.S. bank loan team, said in a press release.
Sara Bonesteel, managing director and head of alternative investments at Prudential Fixed Income, said the latest deal had attracted some new investors.
The Dryden XXIV Senior Loan Fund is the the 41st cash or synthetic CLO/CDO structure to be managed or sub-advised by Prudential Fixed Income from its Newark and London offices. The firm manages over $9 billion in CLO capital