Ratings Assigned To Six Dryden 33 Senior Loan Fund Classes In Connection With Refinancing


  • Dryden 33 Senior Loan Fund refinanced its class A-R, B-R, C-R, D-R, and E-R notes on March 15, 2019, through an optional redemption and replacement note issuance.
  • We withdrew our ratings on the original class A-R, B-R, C-R, D-R, and E-R notes following payment in full on the March 15, 2019, refinancing date.
  • After analyzing the changes to the transaction, we assigned our ratings to the replacement class A-R2, B-R2, C-R2, D-R2, and E-R2 notes, as well as the new class F-R2 notes.
  • The assigned ratings reflect our opinion that the credit support available is commensurate with the associated rating levels.
CENTENNIAL (S&P Global Ratings) March 15, 2019--S&P Global Ratings today 
assigned its ratings to the class A-R2, B-R2, C-R2, D-R2, and E-R2 replacement 
notes, as well as the new class F-R2 notes from Dryden 33 Senior Loan Fund, a 
collateralized loan obligation originally issued in May 2014 and refinanced in 
November 2016 that is managed by PGIM Inc. We withdrew our ratings on the 
original class A-R, B-R, C-R, D-R, and E-R notes following payment in full on 
the March 15, 2019, refinancing date.

On the March 15, 2019, refinancing date, the proceeds from the class A-R2, 
B-R2, C-R2, D-R2, and E-R2 replacement note issuances, as well as the new 
class F-R2 notes, were used to redeem the original class A-R, B-R, C-R, D-R, 
and E-R notes as outlined in the transaction document provisions. Therefore, 
we withdrew our ratings on the original notes in line with their full 
redemption, and we are assigning ratings to the replacement notes. 

The replacement notes were issued via a proposed supplemental indenture, 
which, in addition to outlining the terms of the replacement notes, also 
include the following key changes: 
  • The 2019-issued replacement class A-R2, B-R2, C-R2, D-R2, and E-R2 notes were issued at a lower spread over three-month LIBOR than the 2016-issued replacement notes.
  • The new class F-R2 notes were issued at a floating spread over three-month LIBOR. The class F-R2 notes are rated at a 'B(sf)' rating level, a class of notes that did not exist in the original closing date capital stack, nor in the post-2016-issued replacement notes capital stack.
  • The stated maturity was extended approximately 0.5 years to April 15, 2029, from Oct. 15, 2028.
  • The reinvestment period was shortened 0.5 years to April 15, 2021, from Oct. 15, 2021.
  • The non-call period was extended 1.25 years to April 2020.
Our review of this transaction included a cash flow analysis, based on the 
portfolio and transaction as reflected in the trustee report, to estimate 
future performance (see table). In line with our criteria, our cash flow 
scenarios applied forward-looking assumptions on the expected timing and 
pattern of defaults, and recoveries upon default, under various interest rate 
and macroeconomic scenarios. In addition, our analysis considered the 
transaction's ability to pay timely interest or ultimate principal, or both, 
to each of the rated tranches. 

The assigned ratings reflect our opinion that the credit support available is 
commensurate with the associated rating levels. 

We will continue to review whether, in our view, the ratings assigned to the 
notes remain consistent with the credit enhancement available to support them, 
and we will take further rating actions as we deem necessary.
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