Prudential Investment Management is planning a $379 million collateralized loan obligation of floating-rate notes, according to a pre-sale from Standard & Poor's.
The issuing vehicle is Dryden XXVIII Senior Loan Fund. RBS Securities is the arranger on the deal which is expected to close July 3, 2013.
The transaction has been assigned preliminary ratings from S&P. The Class X and Class A-1 notes, which both feature 39.51% subordination, were rated ‘AAA’. The X notes have a three-month Libor plus 0.89% interest rate and the A-1 notes have a three-month Libor plus 1.10% interest rate. The Class A-2 notes, which feature 27.73% subordination and a three-month Libor plus 1.55% interest rate, were rated ‘AA’. The Class A-3 notes, which feature 19.43% percent subordination and a three-month Libor plus 2.70% interest rate, were rated ‘A’. The Class B-1 notes, which feature a 14.38% subordination and a three-month Libor plus 3.20% interest rate, were rated ‘BBB’. The Class B-2 notes, which feature 9.81% subordination and a three-month Libor plus 3.90% interest rate, were rated ‘BB-‘. The Class B-3 notes, which feature 8.85 subordination and a three-month Libor plus 5.05% interest rate, were rated ‘B’. The A-3-B-3 classes are deferrable. The subordinated notes, which account for $36.80 million, were not rated.
The notes have a two-year noncallable period.
The collateral consists of a revolving pool consisting primarily of broadly syndicated, U.S. dollar-denominated senior secured loans. The pool has 231 obligors with an average holding of 0.43%.
