Bank of America Corp. raised a $415.8 million collateralized loan obligation for BlackRock Inc., 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.