The fund, Magnetite VI, includes a $245.8 million slice rated AAA that has a coupon of 150 basis points more than the London interbank offered rate, said the people, who asked not to be identified because the terms are private. A basis point is 0.01 percentage point. Libor is a rate at which banks say they can borrow in dollars from each other.
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.
Citigroup Inc. raised a $408 million CLO for BlackRock last year, according to data compiled by Bloomberg.
Lauren Trengrove, a BlackRock spokeswoman, and Kerrie McHugh, a Bank of America spokeswoman, declined to comment.
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