Deutsche Bank AG (DB) raised a $563.9 million collateralized loan obligation for GSO Capital Partners LP, the credit-investment arm of Blackstone Group LP (BX), according to a person with knowledge of the deal.
The Marine Park CLO includes a $343 million slice rated AAA that pays a rate of 147 basis points more than the London interbank offered rate, said the person, who asked not to be identified because the terms are private. The fund also includes a $10 million AAA slice with a fixed-rate coupon. Libor is the rate at which banks say they can borrow in dollars from each other.
The fund was increased from $514.1 million, according to data compiled by Bloomberg.
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.
This is the second CLO GSO raised this year, according to Bloomberg data. It previously issued a $513.6 million fund with Citigroup Inc. in July. There have been $24.5 billion of CLOs backed by widely syndicated loans arranged in the U.S. this year, the most volume since 2007, according to Bloomberg and Morgan Stanley data.
Heather Lucania, a GSO spokeswoman, and Amanda Williams, a Deutsche Bank spokeswoman, declined to comment.
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