Seix Investment Advisors is returning to the CLO market for the first time since the financial crisis.
The firm is preparing a collateralized loan obligation, dubbed Mountain View CLO, with a targeted par balance of $400 million, according to Moody’s Investors Service. Moody’s has provisionally assigned ‘Aaa’ ratings to two tranches of senior notes, one for $4 million tranche and one for $253 million.
In addition to the notes rated by Moody's, the structure will issue seven other tranches, including subordinated notes.
Mountain View CLO is a managed cash flow CLO. The transaction is collateralized primarily by broadly syndicated first-lien senior secured corporate loans. At least 92.5% of the portfolio must be invested in senior secured loans and eligible investments and up to 7.5% of the portfolio may consist of senior secured bonds, senior secured notes, senior unsecured bonds and second lien loans.
At closing, the portfolio is expected to be approximately 70% ramped and 100% ramped within five months thereafter.
Seix, based in Upper Saddle River, NJ, is an indirect subsidiary of SunTrust Banks with total assets under management of $28.1 billion. It manages three other CLOs with the Mountain View moniker; two were issued in 2006 and a third in 2007, according to the firm’s website. Seix also manages two “Baker Street” CLOs, one issued in 2005 and the other in 2006.