Wells Fargo plans new CLO for 40/86 Advisors, says Bloomberg

Wells Fargo is looking to launch a $275 million CLO for 40/86 Advisors, according to Bloomberg. The bank has priced a couple of deals this year alongside Mitsubishi UFJ – Carlyle CLO 2011-1 in June and Golub CLO 10 last month.

According to Bloomberg, this transaction will be titled Mill Creek CLO (see table). The senior notes on this deal are expected to carry a coupon of 175bp over Libor, some 20bp wider than the triple-As in CSAM’s Atrium VII, which priced only a week ago.

40/86 Advisors is based in Carmel in Indiana. The firm manages $24 billion of fixed income assets including a number of CBOs as well as two CLOs. The most recent of these CLOs, Eagle Creek Funding, closed in February 2006.

Mill Creek CLO