Deutsche Bank is marketing a $500 million collateralized obligation (CLO) for Western Asset Management Co. (WAMCO), according to rating agency reports.

The deal, Mountain Hawk II CLO, includes two senior tranches of notes with a preliminary ‘AAA’ rating from Moody’s Investors Service and Standard & Poor’s; the $270.5 million Class A1 notes and $53 million of Class A2 delayed-draw notes. Both are being offered at an interest rate of three-month Libor plus 116 basis points; however the delayed-draw notes will receive that rate only on the portion drawn and a commitment fee on the remainder.

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