TELOS Asset Management is preparing its first collateralized loan obligation since the financial crisis.
The deal, Telos CLO 2013-2, has a targeted par amount of $350 million, of which $309 million has been identified, according to a presale report published Wednesday by Standard & Poor’s.
The deal’s senior tranche, the $225 million Class A-1, is being offered at three-month Libor plus 142 basis points. It has a preliminary 'AAA' rating from S&P.
BNP Paribas Securities is the initial purchaser and placement agent.
The arbitrage, cash-flow CLO is expected to close Feb. 26. It has a four-year reinvestment period and a two-year non-call period.
TELOS Asset Management, formerly Tricadia Loan Management LLC, is a global credit manager with approximately $1.07 billion in assets under management as of October 2012. The firm manages investments in senior secured loans via CLOs and managed accounts. This transaction is the third CLO it will manage. The first was issued in 2006 and the second in 2007.