Bank of America Said to Raise $311.6 Million CLO for Shenkman

Bank of America Corp. raised a $311.6 million collateralized loan obligation for Shenkman Capital Management Inc., according to two people with knowledge of the deal.

The Slater Mill Loan Fund, includes a $190 million slice rated AAA that has a coupon of 145 basis points more than the London interbank offered rate, said one of the people, who asked not to be identified because the terms are private. Libor is the rate at which banks say they can borrow in dollars from each other.

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.

There have been $14.2 billion of CLOs backed by widely syndicated loans issued in the U.S. this year, compared with $11.7 billion in all of 2011, according to data compiled by Bloomberg.

John Yiannacopoulos, a Bank of America spokesman, didn’t return a telephone call seeking comment. A call to Shenkman 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