Invesco is planning a $400 million collateralized loan obligation, according to a presale report issued Monday by Moody’s Investors Service.
The deal, Nomad CLO, has a $250 million senior tranche of floating-rate notes that has been provisionally been rated ‘AAA’ by Moody’s. Five other tranches, including a tranche of subordinated notes, are not rated by Moody’s.
Nomad is a managed, cash flow CLO. At least 95% of the portfolio must consist of senior secured loans and eligible investments, and up to 5% of the portfolio may consist of second-lien loans, senior secured notes and high-yield bonds, according to the presale report. The portfolio is expected to be approximately 75% ramped as of the closing date and 100% ramped within four months thereafter.
Invesco Senior Secured Management will manage the CLO, which has a four-year reinvestment period.