Citigroup Inc. raised a $326.8 million collateralized loan obligation for Onex Credit Partners LLC, according to two people with knowledge of the transaction.
The CLO, OCP CLO 2012-1, includes a $217.5 million slice rated AAA by Standard & Poor’s that pays 150 basis points more than the London interbank offered rate, said the people, who declined to be identified because the terms are private.
The amount of CLOs backed by widely syndicated loans raised in the U.S. this year totals to $2.4 billion, twice as much as this time last year, according to data compiled by Bloomberg. At the height of the market in 2007 $91.1 billion of CLOs were raised, according to Morgan Stanley data.
This is the first CLO for the credit investment business of Onex Corp., the Toronto-based private-equity firm. The fund was increased from $303.6 million.
Onex hired Paul Travers last year from DiMaio Ahmad Capital LLC to help expand its CLO business. Onex Credit Partners managed about $1.4 billion as of Sept. 30, according to its website.
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.
Michael Gelblat, chief executive officer of Englewood Cliffs, New Jersey-based Onex Credit Partners, and Scott Helfman, a Citigroup spokesman, declined to comment.