Credit Suisse Asset Management is ramping up a $350 million collateralized loan obligation that market players are saying is expected to be upsized a bit as the manager has been able to find additional collateral for the deal. The deal will comprise a majority of leveraged loan assets and a small percentage of high yield bonds--loans make up at least 70% of the deal, said sources. Officials at CSFB declined to comment. Ramp up on the deal began in February and after notes price and the warehoused assets are transferred to a special purpose vehicle, the dealer will continue with the final ramp up on the transaction which is expected to close in the next couple of months.
The notes to fund the deal are expected to price this week and price talk on the liabilities is 45 basis points over LIBOR for the Standard & Poor's rated triple-A notes, 140 basis points over LIBOR for the single-A rated notes, 240 basis points over LIBOR for the triple-B rated notes, and 700-725 basis points for the double-B rated bonds.