(Updates with additional debt pieces in fifth paragraph.)
Nov. 3 (Bloomberg) -- Bank of America Corp. raised a $405 million collateralized loan obligation for Sankaty Advisors LLC, the credit affiliate of Bain Capital LLC, according to a person with knowledge of the deal.
The CLO includes a $251 million piece rated AAA by Standard & Poor’s that has a coupon of 160 basis points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private.
There have been almost $10 billion of CLOs backed by widely syndicated loans raised in the U.S. this year, according to Bloomberg data. At the height of the market in 2007 there were $91.1 billion of that type of the fund sold in the U.S., according to Morgan Stanley data.
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.
The fund also includes a $47 million AA graded slice that has a coupon of 250 basis points more than Libor; a $28 million A piece that pays a coupon of 350 more than the benchmark, a $19 million BBB slice that pays 475, and a $17 million BB piece paying 650, the person said.
There is also a $43 million slice of equity.
Charlyn Lusk, a spokeswoman for Boston-based Sankaty, didn’t immediately return a telephone call seeking comment.
--Editors: Faris Khan, Robert Burgess
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