Ten years gone: AIG brings first post-crisis U.S. CLO to market

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AIG is issuing its first CLO since the financial crisis, in a $500 million transaction.

According to a ratings bulletin from Morningstar Credit Ratings, AIG CLO 2018-1 will have seven classes of notes including a $296.5 million triple-A tranche that pays 132 basis points over three-month Libor. Morningstar is not rating any of the other class securities.

The new deal has a five-year reinvestment period and cannot be called for two years.

AIG declined to comment when reached by Asset Securitization Report.

AIG’s return to the market had been expected following its acquisition last May of the five-year-old alternative asset manager Covenant Credit Partners, a Charlotte, N.C. firm led by CLO veteran Marc Boatright, formerly on ING Investment Management.

Covenant has issued three CLOs since 2014, the most recent its $400 million Covenant Credit Partners CLO III printed in September 2017.

AIG was a frequent issuer in the pre-crisis CLO 1.0 era, but sold off its investment advisory and asset management business – AIG Investments – in 2010 to Pacific Century Group. The company was renamed PineBridge Investments as a majority-owned affiliate of Pacific.

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