Babson Capital Management has closed a $500 million CLO, its first since the financial crisis, the Springfield, Mass.-based firm said today.
The transaction, which was arranged by Citigroup, is a refinancing of another CLO managed by Babson, Babson CLO 2008-I.
The collateral underlying Babson CLO Ltd. 2011-I is primarily made up of a revolving pool of broadly syndicated, speculative-grade senior secured term loans, along with a small amount of second-lien loans and high yield bonds.
The $342 million senior-most A1 tranche has been rated 'AAA' by Standard & Poor’s. The deal also includes a $37 million A2 tranche, a $42 million tranche B, a $22 million tranche C, an $18 million tranche D and $50.8 million of subordinated notes.
The deal has a two-year non-call period and a three-year reinvestment period. The stated maturity is Sept. 28 2021.