RBS Securities is arranging a $375 million collateralized loan obligation for OFS Capital Management, according to a presale report published Thursday by Standard & Poor’s.

The transaction will issue two classes of securities with a preliminary ‘AAA’ rating from S&P: a $132 million tranche being offered at three-month Libor plus 93 basis points and a $108 million tranche being offered at Libor plus 145 basis points. Both classes benefit from the same amount of subordination, 39.11%

The arbitrage, cash-flow CLO has a four-year reinvestment period and is non-callable for two years. Approximately $299 million of the target par balance of $375 million has been identified, according to the presale report.

OFS Capital Management is wholly owned by Orchard First Source Asset Management LLC (OFSAM), a Delaware limited liability company that specializes in sourcing, investing in, and managing loans primarily consisting of senior secured leveraged cash flow transactions.

OFS Capital had four CLOs and a total of $10 billion under management as of Jan. 16. 

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