Korea Asset Management Company Kamco launched a $367 million deal earlier this week on an issue price of par to yield 200bp over Libor. The deal, led by Deutsche Bank and UBS Warburg, has a final maturity of 8.5 years, and an average life of 4.8 years.
Rated at Korea's sovereign Baa2BBBBBB ceiling, the offering is classified as a true sale collateralized loan obligation CLO securitization under the republic's Asset Backed Securities ABS Law enacted in September 1998. The sovereign rating was obtained because of a high level of credit concentration deriving from government-owned Korea Development Bank KDB, which sits at the heart of the deal.
This has led some...
