Citigroup Inc. is raising a $458.3 million collateralized loan obligation for WCAS Fraser Sullivan Investment Management LLC, according to two people with knowledge of the deal.
The fund, which will refinance the COA Tempus CLO, includes a $287 million slice rated AAA by Standard & Poor’s, said the people, who declined to be identified because the terms are private. The CLO may price the week of April 9, 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.
Citigroup raised a $408.7 million CLO for Fraser Sullivan last year, according to data compiled by Bloomberg.
Fraser Sullivan, which managed about $5.4 billion in assets as of Dec. 31, was founded in 2005 by John Fraser and Tighe Sullivan. Private-equity firm Welsh, Carson, Anderson & Stowe has a 50 percent stake in the company.
John Fraser didn’t return a telephone call seeking comment. Scott Helfman, a Citigroup spokesman, declined to comment.