Fitch Ratings said Friday it has assigned preliminary ratings to a $519 million collateralized loan obligation to be managed by LCM Asset Management.
The deal, LCM XII Limited Partnership, includes a $322.5 million Class A tranche with an 'AAA' ratings that benefits from credit enhancement of 35.5%, according to the presale report.
Net proceeds from the issuance of the notes will be used to purchase a portfolio of approximately $500 million of leveraged corporate loans iwth a weighted average rating of 'B'. The CLO will have a four-year reinvestment period and a two-year non-callable period.
Morgan Stanley is the lead arranger.
The deal is at least the third CLO to hit the market this month. This week, Feingold O’Keeffe priced a $515 million deal called Longfellow Place with a triple-A tranche that priced at Libor plus 145 basis points. Also this week, Symphony Asset Management had a $828 million issue called Symphony XI with a triple-A tranche priced at Libor plus 130 basis points, according to research published by Standard & Poor's.
LCM has $4.4 billion under management as of Oc.t 10, 2012 and has managed 17 CLOs, according to Fitch's presale report.
