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 khaunss@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net