Merrill Lynch is said to be close to pricing the notes backing a collateralized loan obligation (CLO) for Prudential Financial's leveraged bank loan group. The CLO is called Dryden 5 and is set to be approximately $350 million, according to a source. Ross Smead, portfolio manager for Prudential's leveraged bank loan division, declined to comment. Price talk on the triple-A notes is within the LIBOR plus 55 basis points level, said the source. This will be Prudential's second CLO this year, with UBS bringing the $349 million Dryden 4 to market in August. The triple-A notes for Dryden 4 priced at LIBOR plus 54 basis points (LMW, 8/10). A Merrill spokesman also declined comment.
Merrill Bringing Prudential Deal To Market