Bloomberg News

Citigroup Said to Be Raising $400 Million CLO for Apollo Global

January 09, 2012

Jan. 5 (Bloomberg) -- Citigroup Inc. is raising a collateralized loan obligation to be managed by Leon Black’s Apollo Global Management LLC with a target size of $400 million, according to three people with knowledge of the deal.

The CLO, ALM V, includes a $257 million slice rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service, said the people, who declined to be identified because the terms are private. Price guidance on the fund may be announced next week, the people said.

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.

Scott Helfman, a Citigroup spokesman, didn’t immediately return a telephone call seeking comment.

Details of the CLO structure are as follows:

--Editors: Faris Khan, Chapin Wright

To contact the reporter on this story: Kristen Haunss in New York at khaunss@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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