Banks are marketing collateralized loan obligations for LCM Asset Management and Golub Capital this week, according to presale reports from Standard & Poor’s.
Morgan Stanley is arranging a $539 million deal for LCM. The deal, LCM XIII Ltd Partnership, includes a $322 million, ‘AAA’-rated class that is being marketed at three-month LIBOR plus 130 basis point. That is well inside levels on senior tranches of deals marketed in the fourth quarter of 2012, which averaged closer to LIBOR plus 140 basis points.
The deal is expected to close Feb. 26. It has a four-year reinvestment period and a two-year non-call period.
S&P also has a presale out today on a $513.2 million CLO that Citigroup is arranging for Golub Capital. Golub is known as a middle market lender, but this deal, the firm’s 12th CLO, will be collateralized primarily by broadly syndicated senior loans. As of Jan. 31, the issuer had identified 77.22% of the portfolio's collateral
A $296 million, ‘AAA’-rated tranche is being marketed at LIBOR plus 145 basis points.
The deal is expected to close on Feb. 13. Its reinvestment period ends January 2017 and its non-call period ends January 2015.