Brigade Capital Management is issuing its first collateralized loan obligation of the year.

The deal, Battalion CLO IV, will issue $378 million notes backed by a portfolio of broadly syndicated corporate loans, according to rating agency reports.

Merrill Lynch, Pierce, Fenner, & Smith is the arranger.

The $124 million senior tranche is rated ‘AAA’ by Standard & Poor’s and ‘Aaa’ by Moody’s Investors Service. It was marketed at three-month Libor plus 140 basis points.

Moody’s did not rate the remainder of the deal.

A $50 million tranche with an ‘AA’ rating from S&P was offered at  Libor plus 200 basis points; A $35 million, ‘A’-rated tranche was offered at Libor plus 300 basis points; a $22 million, ‘BBB’-rated tranche was offered at Libor plus 335 basis points; a $19 million, ‘BB’-rated tranche was offered at Libor plus 460 basis points; and an $11 million, ‘B’-rated tranche was offered at Libor plus 575 basis points

There are also $39 million of notes unrated by either agency.

As of Aug. 28, 2013, the issuer had identified 72.17% of the portfolio's collateral.

Brigade manages three other S&P rated CLOs; the most recent, Battalion CLO III, was issued in December 2012.

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