RBS Said to Raise $464 Million CLO for CIFC Asset Management

Royal Bank of Scotland Group Plc (RBS) raised a $464 million collateralized loan obligation for CIFC Asset Management LLC (DFR), according to three people with knowledge of the deal.

The fund includes a $280 million slice rated AAA by Standard & Poor’s that has a coupon of 144 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. PNC Capital Markets LLC was a co-arranger of the deal, the people 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.

Ed Canaday, an RBS spokesman, declined to comment. Peter Gleysteen, CIFC’s chief executive officer, didn’t return a telephone call 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