DFG Investment Advisers, a New York-based money manager, is prepping its first collateralized loan obligation, according to a presale report published Thursday by Standard & Poor’s.
The deal, dubbed Vibrant CLO, is a cash flow transaction. It will issue $281.9 million of rated notes backed by $317.4 million of primarily broadly syndicated, senior secured loans.
The deal’s senior-most tranche, the $191 million class A-1, has 39.56% subordination and a preliminary ‘AAA’ rating from S&P. It is being offered at three-month Libor plus 148 bps, slightly above recent deals.
Citigroup Global Markets is the arranger.
Vibrant CLO is expected to be fully ramped at closing, which is rare these days because warehouse financing is difficult to come by. As of Dec. 13, the manager had identified and purchased or committed to purchase all of the target collateral, according to S&P.
The deal will close on or around Jan. 17; it is non-callable until July 2015 and can reinvest until July 2016.
DFG, founded in December 2006, specializes in structured and alternative credit products, but does not currently manage any CLOs. As of Sept. 30, 2012, it managed approximately $0.84 billion in assets and had 19 employees, including 11 investment professionals.