Symphony Asset Management is marketing a $832.5 million collateralized loan obligation, according to a presale report by Fitch Ratings.

Merrill Lynch, Pierce, Fenner & Smith is the arranger.

Fitch has assigned preliminary ‘AAA’ ratings to the $500 million senior A class of notes to be issued by the trust, Symphony CLO XII. The tranche is being marketed at an interest rate of Libor plus 130 basis points, below the spread on some recent CLOs. It benefits from credit enhancement of 37.5%, which Fitch said is in line with, but slightly lower than, the average of recent CLO issuance.

Fitch is not ratings the remainder of the deal, which consists of seven classes of notes that are junior to the A class. The manager may, under certain conditions, issue additional notes of any of these classes, according to the presale report.

The CLO is non-callable for two years and has a four-year reinvestment period.

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