New York-based Patriarch Partners has reportedly closed a roughly $560 million collateralized loan obligation. Market sources said the CLO is backed by collateral comprised of leveraged loans. CIBC World Markets was the underwriter on the notes backing the deal. David Power, CDO syndications banker at CIBC, confirmed the deal closed, but would not elaborate further on the transaction's structure. Officials at Patriarch Partners did not return repeated phone calls.
Market sources said the majority of the debt supporting the deal had a triple-A rating and was priced at LIBOR plus 50 basis points. The deal has a traditional cash flow arbitrage structure.