Marathon Asset Management on Wednesday sold the first new-issue U.S. collateralized loan obligation with a tranche priced based on the Secured Overnight Financing Rate rather than Libor, according to a person familiar with the matter.
A $24.75 million slice of a transaction known as Marathon 2021-17 priced at 210 basis points over the SOFR benchmark, said the person who is not authorized to speak publicly and asked not to be identified. The rest of the $429.6 million offering was linked to the three-month London interbank offered rate, which has been the norm for CLOs. The market is facing a year-end deadline to use alternatives to Libor for new leveraged loans, which are the building blocks of CLOs.
Volta Finance Limited (LON:VTA) is a closed-ended limited liability company registered in Guernsey. Volta’s investment objectives are to seek to preserve capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis.