RBS Securities is arranging a $400 million collateralized loan obligation for Denali Capital LLC, according to a presale report from Moody’s Investors Service.
Denali Capital X is a typical cash-flow transaction that will be backed primarily by broadly syndicated senior loans. It has a two-year non-call period and a four-year reinvestment period.
The deal’s senior tranche, the ‘Aaa’-rated $255.5 million Class A-2L, is being marketed at three-month Libor plus 114 basis points; the ‘Aa2’-rated $37.75 million Class A-2L is being marketed at Libor plus 180 basis points.
Currently the manager has acquired less than 5% of the assets; however it expects to acquire approximately half of asset when the deal closes this month. It will have another three months to complete the ramp-up.
Denali Capital LLC manages over $1.9 billion in banks loans, according to Moody’s.