Sankaty Advisors has reportedly wrapped up its $500 million collateralized loan obligation--Race Point CLO I-- backed by leveraged loans. Market sources said the structure is a cash flow arbitrage deal with notes sold to investors by underwriter Deutsche Bank. Pricing is reportedly 43 basis points over LIBOR on the $327 million AAA tranche, 75 basis points over LIBOR on the $71 million AA tranche, 135 basis points over LIBOR on the $22 million A- tranche, 240 basis points over LIBOR on the $20 million BBB tranche, and 700 basis points over LIBOR on the $21 million BB- tranche of the transaction. The remaining equity piece is reportedly $39 million. Kim Harris, portfolio manager at Sankaty, and the Sankaty press office, did not return calls.
Sankaty Wraps Up $500 Mln CLO