A U.S. bankruptcy court has approved Lehman Brothers’ collateralized loan obligations (CLO) deal. As per the agreement, WCAS Fraser Sullivan (WCAS-FS) will handle Lehman’s $5.3 billion commercial loan portfolio, comprising $3.8 billion in commercial loans and $1.5 billion in unfunded loan commitments. WCAS-FS will move assets from the loan portfolio into a series of static CLOs. WCAS-FS is likely to issue one or more CLO transactions collectively involving at least $500 million in loans within the next six months and additional CLO transactions collectively involving at least $500 million in loans within a year.
Click here for the release from Business Wire.