Jefferies Group is preparing a second collateralized loan obligation backed entirely by revolving lines of credit and delayed draw loans.
The securitization trust, JFIN Revolver CLO 2014, will buy the majority of its initial collateral from Jefferies Finance LLC, an entity affiliated with the manager, according to a presale report published by Standard & Poor’s. This pool of collateral will have maximum principal balance of U.S. $450 million; however, at the transaction's closing, the amount actually borrowed is expected to be approximately $25.00 million. As a result, the CLO will be required to fund the remaining $425.00 million if and when the borrowers require such funds. In the meantime, it will deposit these funds in a special account.