Bloomberg News

GreensLedge Said to Sell $525.5 Million Highland Capital CLO

February 25, 2013

GreensLedge Capital Markets LLC and Cantor Fitzgerald LP raised a $525.5 million collateralized loan obligation for Highland Capital Management LP, the first for the Dallas-based firm since 2008, according to a person with knowledge of the deal.

The CLO includes a $190.8 million AAA slice paying a coupon of 87 basis points more than the London interbank offered rate and a $115.8 million piece paying 125 basis points more than the benchmark, said the person, who asked not to be identified because the terms are private. Libor is a rate banks say they can borrow in dollars from each other.

Acis Capital, a unit of Highland, will manage the loans in the fund that was originally being marketed at $416 million, the person said. 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.

Highland last issued a U.S. CLO in March 2008 when it raised a $515.3 million fund, the person said. The firm sold the management contracts on its European CLOs to Carlyle Group last year.

In 2011, Highland, which manages $20 billion in assets, took over a CLO from CypressTree Investment Management LLC, according to data compiled by Bloomberg. The firm now oversees 23 such funds, the person said.

Jim Kane, co-founder of GreensLedge, didn’t immediately return a telephone call seeking comment. A Highland spokesman 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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