Barclays Capital Asset Management is in the market buying up assets for a new $300 million collateralized loan obligation. The deal, right now referred to in the market as Venture CLO, will be backed with 90% senior secured leveraged loans and 10% high yield bonds. Hans Christensen, portfolio manager at Barclays, declined to comment on the transaction. Underwriter Credit Suisse First Boston is reportedly beginning the marketing process on the deal this week with plans to price notes for investors in roughly three weeks. Officials at the firm declined to comment.
The deal is a cash flow arbitrage structure comprising a $240 million Standard & Poor's rated AAA tranche, a $21 million A- tranche, a $12 million BBB tranche, and $4.5 million BB tranche. The equity tranche is slated at $22.5 million.