(Bloomberg) -- Asset management and insurance company Eldridge sold its first collateralized loan obligation on Monday, a few years after founder Todd Boehly sold credit manager CBAM Partners to Carlyle Group Inc. and said he intended to create a new CLO firm.
Eldridge's debut CLO offering was $504.25 million, backed by broadly syndicated loans and arranged by JPMorgan Chase & Co. The biggest portion of the transaction, the $290 million of class A-1 bonds rated Aaa, were sold to yield 1.33% more than their Secured Overnight Financing Rate benchmark.
The sale comes amid a busy year for CLOs, with $152.4 billion of new issues this year, up about 7% from last year, according to data compiled by Bloomberg News. Including refinancings and resets, this year there's been record volume of about $397 billion of the securities, according to a note from JPMorgan. The bonds are backed by portfolios of the loans often used for leveraged buyouts, which has helped fuel strong demand for leveraged loans.
A spokesperson for JPMorgan declined to comment. A representative for Eldridge wasn't immediately available to comment.
A former president of Guggenheim Partners, Boehly helped that firm build an asset management unit that now oversees more than $350 billion. He's renowned for buying complicated credit businesses and pioneering acquisitions of insurance assets in the wake of the 2008 financial crisis. He is worth an estimated $8.8 billion, according to the Bloomberg Billionaires Index, and is a co-owner of multiple professional sports teams including Major League Baseball's Los Angeles Dodgers and the Premier League's Chelsea Football Club.
Boehly sold credit manager CBAM Partners to Carlyle Group Inc. for $787 million in 2022, and said later that year that he was creating a new CLO firm. CBAM capitalized on a boom in leveraged loans, with Boehly selling the business when the market was strong.
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