Sankaty Advisors is marketing its second collateralized loan obligation deal of the year, according to a presale report by Fitch Ratings.
The $415 million transaction, Avery Point V, consists of nine tranches, including two with preliminarily AAA’ ratings: a $152 million tranche offered at three-month Libor plus 140 basis points and a $100 million tranche offered at 149 basis points. Both benefit from a credit enhancement of 37.0%
Net proceeds will be used to purchase assets to reach a target portfolio of about $400 million of leveraged loans. The indicative portfolio consists of 97.1% of senior-secured loans.
The CLO will have a fairly standard two-year non-call period and four-year reinvestment period.
The arranger for the deal is GreensLedge Captial Markets.
In April, Sankaty marketed Avery Point CLO IV, a $665.75 million collaterized loan obligation with $472 million of class A rated notes from Standard & Poor’s, offered at 152 basis points over Libor. The notes are non-callable for two years, with a four year reinvestment period.
Founded in 1997, Sankaty is the fixed income affiliate of Bain Capital, and has offices in Boston, Chicago, New York, London, Luxembourg, and Melbourne. As of April 1, Sankaty had approximately $23.8 billion in assets under management. The company has experience with CLOs, managing 22 since 1999.
