Citigroup has underwritten $500 million for a new CLO that will be managed by FS COA Management, an affiliate of Fraser Sullivan Investment Management. And the CLO could price this week, according to Bloomberg.
The proceeds from fund, named the COA Tempus CLO Ltd., will refinance an existing CLO issued in January 2009, which contains some loans arranged by Citi.
Standard & Poor’s has rated the funded portions of the CLO: a $327 million tranche of triple-A-rated class A-1 notes; a $15 million tranche of double-A-rated A-2 notes; and a $36.5 million tranche of single-B-rated notes. There is also a $102.1 million tranche of equity.
The CLO will consist primarily of U.S. dollar-denominated senior secured loans made to corporate borrowers.
By the end of the month, Fraser is expected to acquire approximately 80% to 85% of the target portfolio, with the remaining debt to be purchased by September 2010.