Bank of America Corp. (BAC) has offered initial price guidance on the highest-rated portion of a $413 million collateralized loan obligation it is raising for Credit Suisse Asset Management, according to two people with knowledge of the deal.
The $252.5 million slice rated AAA by Standard & Poor’s may pay a rate of 135 basis points to 145 basis points more than the London interbank offered rate, said the people, who declined to be identified because the terms are private.
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.
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