Beecher Loan to price $110 million CLO on Friday

By Michelle Anderson

Rochester, N.H., March 7 - Beecher Loan Fund, Ltd. is expected to price a $110 million three-tranche synthetic CLO on Friday, according to a source close to the deal.

The tranches are expected to be made up of class A at $66.8 million (-/-/A), class B at $44 million (-/-/BBB) and $5.6 million in preferred shares. All are expected to mature in 2019 according to a presale report by DerivativeFitch.

The CLO will be linked to $700 million of high yield senior secured bank loan investments via a total return swap between Beecher and Citibank. The loan investments will ramp up over a six-month period, according to the report.

The arranger and protection buyer on the deal is Citibank, NA and the manager is Hartford Investment Management Co.

Collateral for the notes is made up of six-year bank notes (AA-), floating-rate credit card asset-backed securities (AAA), and cash earning interest at the federal funds rate, according to DerivativeFitch.

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