Bloomberg News

JPMorgan Said to Raise $356 Million CLO for Marathon Asset

April 24, 2012

JPMorgan Chase & Co. (JPM:US) raised a $356 million collateralized loan obligation for Marathon Asset Management LP, according to three people with knowledge of the deal.

The fund includes a $222.1 million slice rated AAA by Standard & Poor’s, said the people, who declined to be identified because the terms are private. A $36.4 million portion rated AA pays a rate of 300 basis points more than the London interbank offered rate, the people said. Libor is the rate at which banks say they can borrow in dollars from each other. A basis point is 0.01 percentage point.

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.

Justin Perras, a JPMorgan spokesman, and Suzanne Hallberg, a spokeswoman for Marathon, declined to comment.

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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