PGIM refinances $478.02 million 2013 CLO notes; AAA refinanced spreads tighten

By Cristal Cody

Tupelo, Miss., Nov. 17 – Prudential Investment Management, Inc.’s asset management business, PGIM, Inc., priced $478,026,500 of notes in the CLO manager’s fourth refinancing year to date.

The vintage 2013 CLO also was reset with an extended maturity, non-call period and reinvestment period.

Refinancing volume year to date continues to remain strong with more than $145 billion of CLOs repriced year to date, according to market sources. Nearly $100 billion of new issue CLOs have priced in 2017.

“AAA refi spreads have tightened as supply has diminished; however, we still favor AA-BBB refi tranches at current levels,” Wells Fargo Securities LLC analysts said in a research note released on Friday.

PGIM priced the refinanced AAA tranche at Libor plus 82 basis points.

Earlier in the year, Prudential Investment refinanced $525 million of notes in the vintage 2014 Dryden 31 Senior Loan Fund vehicle. Prudential priced the AAA-rated tranche in the March 22 transaction at Libor plus 108 bps.

PGIM priced $478,026,500 of notes in a refinancing and reset of the Dryden 30 Senior Loan Fund/Dryden 30 Senior Loan Fund LLC deal, according to a market source and a notice of executed supplemental indenture on Thursday.

The CLO sold $322 million of class A-R floating-rate notes at Libor plus 82 bps in the senior tranche.

Credit Suisse Securities (USA) LLC was the refinancing placement agent.

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