Wells Fargo Said to Raise $284 Million CLO for 40/86 Advisors

Wells Fargo & Co. (WFC) raised a $283.5 million collateralized loan obligation for 40/86 Advisors Inc., according to three people with knowledge of the deal.

The fund includes a $180 million slice rated AAA that pays a rate of 132 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.

Wells Fargo raised a $274.6 million CLO for 40/86 in November, according to data compiled by Bloomberg.

Elise Wilkinson, a Wells Fargo spokeswoman, didn’t immediately return a telephone call seeking comment. A call to 40/86 Advisors also wasn’t returned.

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

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