Bank of America Said to Raise $415.8 Million CLO for BlackRock

Bank of America Corp. raised a $415.8 million collateralized loan obligation for BlackRock Inc. (BLK), according to two people with knowledge of the deal.

The fund, Magnetite VI, includes a $245.8 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. A basis point is 0.01 percentage point. Libor is a 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.

Citigroup Inc. raised a $408 million CLO for BlackRock last year, according to data compiled by Bloomberg.

Lauren Trengrove, a BlackRock spokeswoman, and Kerrie McHugh, a Bank of America spokeswoman, declined to 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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