Bloomberg News

Morgan Stanley Said to Raise $418 Million CLO for Symphony

August 07, 2012

Morgan Stanley raised a $417.8 million collateralized loan obligation for Symphony Asset Management LLC, the firm’s third CLO this year, according to two people with knowledge of the deal.

The fund for Symphony, the San Francisco-based unit of Nuveen Investments, includes a $260 million slice rated AAA by Standard & Poor’s that pays a rate of 151 basis points more than the London interbank offered rate, said the people, who asked not to be identified because the terms are private. Nuveen is the asset manager owned by Madison Dearborn Partners LLC.

Symphony previously raised a $623.75 million CLO in April with Bank of America Corp. and a $388.5 million fund in January with the bank, according to data compiled by Bloomberg. The firm sold a $553 million CLO with Morgan Stanley in May 2011, according to the data.

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. Libor is the rate at which banks say they can borrow in dollars from each other.

Mary Claire Delaney, a Morgan Stanley spokeswoman, and Kathleen Cardoza, a Nuveen spokeswoman, 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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