Sankaty Advisors is marketing a $655.75 million collateralized loan obligation, according to a presale report published by Standard & Poor’s.
The deal, Avery Point CLO IV, will issue $472 million of class A notes with a preliminary AAA’ rating from S&P. The notes are being offered at 152 basis points over Libor.
Morgan Stanley & Co. is the initial purchaser.
The notes are non-callable for two years and the investment manager can reinvest interest and principal payments on the loans used as collateral for four years.
As of April 15, 2014, the issuer had identified approximately 60.04% of the portfolio's collateral, according to S&P.
Sankaty manages nine other CLOs with total assets of $4.29 billion.