Arranger and administrative agent First Union Capital Markets is selling a $200 million credit facility to support a new collaterallized debt obligation established by Tennenbaum & Co., LLC in a New York bank meeting last week.
The 5.5-year secured revolver, subject to a market value borrowing base, is priced at Libor plus 112.5 basis points. Additionally, there will be an unused fee of 25 basis points.
An affiliate of Tennenbaum, Special Value Investment Management, LLC, will serve as the investment manager to the fund. David L. Babson & Co., a member of the MassMutual Financial Group will be retained as a co-asset manager.
The $500 million Special Value Bond Fund II, LLC is Tennenbaum's second market value CDO. Its predecessor, $180 million Special Value Bond Fund I, LLC was established by Tennenbaum in late 1999.
In addition to the bank debt, First Union is also the lead manager on the senior notes, subordinated notes and equity while Jefferies & Co. is co-manager.