June 30 (Bloomberg) -- Morgan Stanley raised a $690.2 million collateralized loan obligation to be managed by GSO Capital Partners LP, the credit investment arm of Blackstone Group LP, the largest fund raised this year.
The top-ranked portion, a $428 million slice rated AAA by Standard & Poor’s, has a coupon of 120 basis points more than the London interbank offered rate, according to two people with knowledge of the deal, who declined to be identified because the terms are private.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
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