International financial conglomerate Citigroup has sold a $1 billion collateralized loan obligation (CLO) for Guggenheim Investment Management, Bloomberg reports. A $600 million piece of the 5180 CLO has a 175 basis points coupon rate above the London interbank offered rate (Libor). The CLO also comprises a $63.7 million portion, a $116.4 million piece, a $64.3 million piece and a $48.2 million portion returning 320, 450, 620 and 865 basis points more than Libor, respectively.
The biggest CLO of this year also includes a $120.5 million of equity. It takes total sales of securities backed by widely syndicated loans this year to $9.5 billion. Guggenheim Investment Management is a division of financial services firm Guggenheim Partners.
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