Goldman Sachs Said to Raise $520 Million CLO for PineBridge
Goldman Sachs Group Inc. (GS) raised a $520 million collateralized loan obligation for PineBridge Investments LLC, according to two people with knowledge of the deal.
The fund, Galaxy XIV CLO, includes a $318.75 million slice rated AAA that pays a rate of 143 basis points more than the London interbank offered rate, said the people, who declined 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. A basis point is 0.01 percentage point.
This is the second CLO PineBridge has issued this year, according to data compiled by Bloomberg. Morgan Stanley arranged a $412.5 million fund for the firm in March.
There have been $32 billion of CLOs backed by widely syndicated loans raised in the U.S. this year, an increase from $11.7 billion in all of 2011, according to Bloomberg data.
Michael DuVally, a Goldman Sachs spokesman, declined to comment.
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