Citigroup Inc. (C:US) raised a $408.8 million collateralized loan obligation for Brigade Capital Management LLC, according to two people with knowledge of the deal.
The Battalion CLO II includes a $259 million slice rated AAA that pays a rate of 135 basis points more than the London interbank offered rate, said the people, who asked not to be identified because the terms are private.
The CLO is a refinancing of a 2008 fund, according to an Aug. 3 report from JPMorgan Chase & Co.
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.
Donald Morgan, a Brigade founder, didn’t immediately return a telephone call seeking comment.
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