JP Morgan Securities is marketing a $399 million collateralized loan obligation for Greywolf Capital Management, according to a presale report published today by Moody’s Investors Service.
Greywolf CLO II will be the first deal the money manager has issued since the financial crisis. Greywolf, based in Purchase, NY, manages a total of $15 billion, including a $500 million CLO that closed in January 2007. It also runs funds that invest in CLO debt and equity.
The latest offering includes $250 million of “AAA’ rated Class A-1 notes; the deal’s other tranches are not rated.
The CLO’s manager has yet to acquire any assets, but has identified assets representing 85% of the portfolio and expects to acquire 70% by the deal’s closing date, which is expected to be in March.
Greyworlf CLO II will invest at least 90% of assets in senior secured loans. Up to 50% of assets can be in covenant-lite loans.