Citigroup, Inc (NYSE: C) is marketing a piece of a $600 million collateralized loan obligation (CLO) managed by Guggenheim Investment Management LLC, according to a report from Bloomberg News.
The report said that the New York-based bank is selling a $300 million chunk of the CLO, rated AAA by Standard & Poor’s. The remainder of the portfolio is expected to include some BBB-rated loans and some equity, both of which will be held by Guggenheim and affiliates.
Guggenheim managing partner Todd Boehly told Bloomberg that final numbers have not been set yet, but the fund is expected to include 85% first-lien senior secured loans and will close sometime in October, according to the report.
Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.
Shares of Citigroup, Inc (NYSE: C) traded up 0.38% during mid-day trading on Friday, hitting $3.98.
