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.