Barclays Bank kicked off last week by marketing the first U.K. balance sheet CLO of the year, paving the way for what's expected to be a busy season for balance sheet CLO issuance in 2007.

Barclay's first balance sheet CLO of the year, Gracechurch Corporate Loans 2007-1, is structured as a GBP3.5 billion ($6.7 billion) equivalent fully funded synthetic balance sheet CLO. The transaction is backed by 1,832 loans to 1,434 medium- sized U.K. enterprises originated by Barclays Bank Plc and is aimed at providing regulatory and economic capital relief to the firm. The GBP3.43 billion equivalent secured floating-rate notes and the GBP70 million unrated Class G notes are to be issued by Lamdba Finance BV.

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