Marathon Sells First New-Issue CLO With SOFR-Linked Tranche (1)

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 ...