GLG Ore Hill, a subsidiary of Man Group, is preparing its first collateralized loan obligation (CLO), according to Moody’s Investors Service.
Morgan Stanley is the underwriter
GLG Ore Hill CLO 2013-1 is a typical cash-flow CLO transaction, backed by a $400 million portfolio of broadly syndicated, below investment grade corporate loans. Moody’s has provisionally assigned ‘AAA’ ratings to three tranches of the deal: $249 million of Class A notes maturing in 2015 and $3 million each of Class X-1 and Class X-2 notes maturing in 2016.
The Class X-1 notes are being marketed at an interest rate of three-month Libor plus 100 basis points; the Class X-2 and Class A notes are being marketed at Libor plus 112 basis ponits.
GLG Ore Hill manages some $60 billion in assets. Although it does not currently manage other CLOs, it has extensive experience in high yield and distress research and has managed a static cash flow CLO and other portfolios backed by leveraged loans, according to Moody's.
Among other CLOs currently in the market is a $400 million deal from Anchorage Capital; it includes a $236 million tranche of A-1 notes rated 'AAA' by Moody's that are being marketed at three-month Libor plus 119 basis points.
J.P. Morgan Securities is the underwriter, according to S&P.
This will be Anchorage Capital's second CLO; its first, Anchorage Capital CLO 2012-1, closed in December 2012.