JPMorgan Chase Said to Raise $510.7 Million CLO for Och-Ziff

JPMorgan Chase & Co. (JPM) raised a $510.7 million collateralized loan obligation for Och-Ziff Capital Management Group, according to three people with knowledge of the deal.

The fund includes a $322.8 million slice rated AAA that has a coupon of 150 basis points more than the London interbank offered rate, said 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. A basis point is 0.01 percentage point.

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.

Jonathan Gasthalter, a spokesman for Och-Ziff, declined to comment. Justin Perras, a JPMorgan spokesman, didn’t return telephone calls seeking comment.

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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