JPMorgan has raised a $617 million CLO for BlueMountain Capital Management, according to a person familiar with the transaction.
BlueMountain CLO 2012-2 is a managed cash flow CLO. It includes two triple-A rated tranches, one fixed-rate and one floating-rate, totalling $382 million. The floating rate tranche priced at Libor plus 142 bps.
As its name suggest, the deal is BlueMountain's second CLO of the year. At least 90% of the portfolio must be invested in senior secured loans or eligible investments and up to 10% of the portfolio may consist of second-lien loans, unsecured loans, bonds and senior secured notes, according to a presale report published by Moody's Investors Service last week. The underlying collateral pool is expected to at least 70% ramped up as of the closing date.
JPMorgan arranged the BlueMountain's previous deal, BlueMountain CLO 2012-1, as well.