Citigroup Said to Propose Pricing on Apidos’ $395 Million CLO

Citigroup Inc. (C) offered initial price guidance for a $395 million collateralized loan obligation to be managed by Apidos Capital Management LLC, according to a person with knowledge of the deal.

The $264.4 million portion of the Apidos CLO VIII that is rated AAA by Standard & Poor’s may pay lenders 140 basis points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private.

The CLO’s $40 million AA slice may pay 240 basis points more than the benchmark, a $27.8 million A piece may pay 400 basis points more than Libor and a $16 million BBB slice may pay 575 basis points. A $15 million BB piece may pay 825 basis points more than Libor, the person said.

There is also a $31.7 million slice of equity. Citigroup is expected to price the fund next week, 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.

Purvi Kamdar, director of marketing and investor relations at Resource America Inc., didn’t immediately return a telephone call seeking comment. Apidos is a unit of Resource.

To contact the reporter on this story: Kristen Haunss in New York at

To contact the editor responsible for this story: Faris Khan at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.