Sankaty Advisors is prepping a 364.025 million ($447 million) European collateralized loan obligation, according to Moody’s Investors Service.
The deal, Rye Harbour CLO, will issue 10 classes of fixed- and floating-rate notes, nine of which are rated by Moody’s. The senior, 211.75 million class is rated AAA’ and benefits from subordination of 39.5%; it is being marketed at a spread of three-month Euribor plus 130 basis points.
Citigroup Global Markets is the initial purchaser.
The portfolio consists of at least 90% senior secured corporate debt; up to 10% of assets may be invested in unsecured senior obligations, second-lien loans, mezzanine obligations and high yield notes.
The manager expects the portfolio to be at least 60% ramped at closing.
Sankaty, an affiliate of Bain Capital, manages $23.8 billion of assets, including $4.7 billion of CLOs. This latest deal is its third European CLO, according to Moody’s. The firm also manages 11 U.S. CLOs.