Bloomberg News

Wells Fargo Said to Raise Two Fortress Investment Group CLOs

July 25, 2012

Wells Fargo & Co. (WFC:US) raised two collateralized loan obligations for Fortress Investment Group LLC (FIG:US), according to people with knowledge of the funds.

The CLOs include the $408.8 million Fortress Credit Funding V, and the $173.9 million Fortress Credit Funding VI, said the people, who asked not to be identified because the terms are private.

The Fortress Credit Funding V includes a $228 million slice rated AAA by Standard & Poor’s that pays a coupon of 165 basis points more than the London interbank offered rate, the people said. The second fund includes a $96.9 million slice also rated AAA and also pays 165 basis points more than the benchmark rate. 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.

Gordon Runte, a Fortress spokesman, didn’t return a telephone call seeking comment. Elise Wilkinson, a Wells spokeswoman, declined to comment.

There have been $18.3 billion of CLOs backed by widely syndicated loans this year, according to data compiled by Bloomberg.

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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Companies Mentioned

  • WFC
    (Wells Fargo & Co)
    • $54.45 USD
    • -0.76
    • -1.4%
  • FIG
    (Fortress Investment Group LLC)
    • $7.89 USD
    • -0.01
    • -0.13%
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