UBS AG (UBSN) raised a $410 million collateralized loan obligation for American Money Management Corp., according to two people with knowledge of the deal.
The CLO includes a $267.6 million slice rated AAA by Standard & Poor’s that pays a coupon of 149 basis points more than the London interbank offered rate, said the people, 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.
Torie von Alt, a UBS spokeswoman, didn’t return a telephone call seeking comment.
The sale of the fund was reported earlier by Reuters and S&P Leveraged Commentary & Data.
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