Citigroup Said to Raise $412.7 Million CLO for Columbia

Citigroup Inc. raised a $412.7 million collateralized loan obligation for Columbia Management Investment Advisers LLC, according to two people with knowledge of the transaction.

The fund includes a $245.5 million slice rated AAA that has a coupon of 147 basis points more than the London interbank offered rate, said the people, who asked not to be identified because the terms are private. Libor is the 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.

Scott Helfman, a Citigroup spokesman, declined to comment, as did Charlie Keller, a Columbia spokesman.

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