Bank of America Merrill Lynch is preparing a $402 million CLO to be managed by Ares Management, according to Bloomberg.

The investment portfolio will include a $260 million tranche rated triple-A by Standard & Poor’s; a $21 million tranche rated double-A; a $35 million single-A-rated tranche, a $22 million triple-B-rated tranche; and an $18 million double-B-rated tranche, an unidentified source told the wire service.

The portfolio will also include a $46 million equity tranche. Bank of America is expected to market and price the deal in January.

Representatives for both firms declined to comment.

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