American Capital is marketing a $400 million collateralized loan obligation, according to a presale report by Standard & Poor’s.

Citigroup Global Markets it the arranger.

The deal, ACAS CLO 2013-2, includes three classes of notes with preliminary ‘AAA’ ratings: a $99 million tranche is being offered at three-month Libor plus 135 basis points; a $140 million tranche will initially pay just Libor plus 110 basis points, but that will rise to Libor plus 160 basis points in 2015 and Libor plus 190 basis points in 2016; and a $10 million tranche is being offered at a fixed rate of 3.559%.

Up 60% of the collateral can be invested in covenant-lite loans and up to 10% of the collateral can be in delayed draw or revolving obligations.

As of Sept. 4, the manager had identified $343.75 million of the targeted par balance of $400 million.

American Capital manages four CLOs; it has a total of $1.2 billion under management.


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