Citigroup has priced a $525 million CLO, upsized from $500 million, that will be managed by an affiliate of WCAS Fraser Sullivan Investment Management.
The COA Tempus CLO Ltd consists of a $343.25 million tranche of triple-A-rated loans, a $15.75 million tranche of double-A-rated loans, a $38.25 million tranche of single-A-rated loans, and a $115.5 million equity portion, bringing the total to $512.75 million.
Fraser Sullivan purchased some the loans at a discount, which accounts for the discrepancy in value, a source familiar with the situation said.
The triple-A tranche priced with a coupon of Libor plus 235 bps, according to Bloomberg. The double-A and single-A tranches have coupons of Libor plus 225 bps and 250 bps, respectively. The double-A tranche priced at a discount of 94.252, while the single-A tranche priced at a discount of 90.717.
The CLO is expected to close on April 16. The portfolio matures April 2019, with the reinvestment period ending April 2010.
WCAS Fraser Sullivan Investment Management was formed in 2007 with the backing of private equity firm Welsh, Carson Anderson & Stowe.