Morgan Stanley is arranging a $500 million collateralized loan obligation for Sankaty Advisors, according to a presale report published Wednesday by Fitch Ratings.

The deal, Race Point VIII CLO, is an arbitrage, cash-flow CLO with a four-year reinvestment period ending in 2017.

Fitch has assigned ‘AAA’ ratings to a $310 million class of senior notes. The tranche is being marketed at LIBOR plus 125 basis points.

The deal’s indicative portfolio consists of 99.2% senior secured loans, with one senior secured bond exposure.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.