Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Wells Fargo Said to Be Raising $270 Million CLO for 40/86

Wells Fargo & Co. is seeking to raise a collateralized loan obligation with a target size of $270 million for 40/86 Advisors Inc., according to two people with knowledge of the terms.

The fund, Mill Creek CLO, may include a $178 million slice rated AAA that has a coupon of 175 basis points more than the London interbank offered rate, said the people, who declined to be identified because terms are private. A basis point is 0.01 percentage point.

CLOs backed by widely syndicated loans issued in the U.S. have totaled $8 billion this year, more than double the number of funds arranged in all of 2010, according to data compiled by Bloomberg. At the height of the market in 2007, $91.1 billion of the debt was issued in the U.S., according to Morgan Stanley data.

Carmel, Indiana-based 40/86, a unit of CNO Financial Group Inc., oversees about $24 billion in assets including investment-grade debt, commercial mortgage loans, high-yield bonds and leveraged loans.

The fund may also include a $15 million piece rated AA with a coupon of 310 basis points more than Libor, a $26 million A slice with a coupon of 435 basis points more than Libor, a $12.25 million portion rated BBB with a coupon of 500 basis points more than Libor and a $10.5 million BB slice with a 675 basis-point coupon, the people said.

The fund may also include $32.84 million of equity, 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.

Elise Wilkinson, a Wells Fargo spokeswoman, and Elliot Sloane, a spokesman for 40/86, didn’t immediately return telephone calls seeking comment.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.