Royal Bank of Scotland Group Plc raised a $259.1 million collateralized loan obligation for Valcour Capital Management LLC, the firm’s first deal, according to a person with knowledge of the transaction.
The fund, Crown Point CLO, includes a $73 million slice rated AAA that has a coupon of 150 basis points more than the London interbank offered rate, said the person, who asked not to be identified because the terms are private. The fund has an additional $93 million AAA piece. 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.
George Marshman, Valcour co-founder, declined to comment.