Bloomberg News

Citigroup Said to Raise $409 Million CLO for Brigade Capital

August 07, 2012

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.

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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