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November 18, 2011

Guggenheim Partners Announces Closing of $1 Billion Collateralized Loan Obligation Transaction

Placed by Citigroup, "5180 CLO" is the Largest Collateralized Loan Obligation Issued to Date During 2011

NEW YORK – Guggenheim Partners, LLC ("Guggenheim"), a diversified financial services firm, announced the closing of a $1,043,000,000 collateralized loan obligation transaction ("5180 CLO" or the "transaction").

The CLO, named "5180 CLO LP", will invest in a diversified portfolio consisting primarily of senior secured bank loans. It is the largest CLO issued in 2011 year-to-date and one of the largest arbitrage CLOs issued since the inception of the market. The transaction comes at a time when yield spreads on many of the underlying securities are near the widest levels since December 2009*.

"We believed this was an opportune time to acquire collateral and we had strong support from the investor community,” said Todd Boehly, president of Guggenheim Partners. “The 5180 CLO transaction exemplifies our commitment to utilizing innovative solutions to unlock value for investors.  We are pleased to have partnered with Citigroup and our clients on this transaction."

5180 CLO will be managed by Guggenheim Investment Management, LLC ("GIM"), an affiliate of Guggenheim Partners. Prior to this transaction, Guggenheim Partners, on behalf of GIM, was awarded "2011 CLO Manager of the Year" in the United States by Creditflux. Details of 5180 CLO's various tranche sizes, ratings, and coupons can be found in the table below:
 

5180 CLO LP Capital Structure
 
CLASS
       
MOODY'S / S&P RATING
       
AMOUNT
       
COUPON
 
Class A-1 Notes        
Aaa / AAA
        $600,000,000         L + 1.75%
Class A-2 Notes         NR / AA         $63,650,000         L + 3.20%
Class B Notes         NR / A         $11,635,000         L + 4.50%
Class C Notes         NR / BBB         $64,250,000         L + 6.20%
Class D Notes         NR / BB         $48,150,000         L + 8.65%
Income Notes        
NR / NR
        $120,500,000         --


*According to data compiled by Bloomberg: http://www.bloomberg.com/news/2011-11-02/citigroup-said-to-sell-1-billion-clo-for-guggenheim-investment.html
 

Disclaimer

Certain statements made by Guggenheim Partners (the “Company”) in this release are forward-looking. The Company’s actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to, the effects of the substantial competition in the investment management business, including competition for access to brokerage firms’ retail distribution systems, the Company’s reliance on revenues from investment management contracts which renew annually, regulatory developments, accounting pronouncements, and other additional risks and uncertainties as set forth in the Company’s filings with the SEC. The Company undertakes no responsibility to update publicly or revise any forward-looking statements.

This is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or fund interest.  Any investment decision to invest  must be made based on the offering materials, which will contain additional information about the investment objectives, terms and conditions of an investment and will be subject to the terms and conditions contained in such offering materials. Investors should consider the investment objectives and policies, risk considerations, charges and expenses carefully before investing. Investors should read the offering materials carefully before they invest.


Member FINRA/SIPC (9/11)
NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE

 



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