Wells Fargo Securities is marketing a $516 million collateralized loan obligation for Octagon Credit Investors, according to a presale report published by Standard & Poor’s.
The deal’s senior-most tranche, the $318 million Class A, is being offered at Libor plus 129 basis points.
On the closing date, the issuer will have purchased or committed to purchase approximately 83.5% of the target portfolio, and will purchase the remaining collateral by May 19, 2013, according to the presale report.
At least 90% of the portfolio must be invested in senior secured corporate loans. The deal’s reinvestment period ends in 2017; it is non-callable until 2015.
Octagon has nine CLOs under management; the firm’s assets totaled $5.3 billion as of Sept. 30, 2012.