DoubleLine closed-end fund launches on New York Stock Exchange

NEW YORK, April 26 Fri Apr 26, 2013 10:52am EDT

NEW YORK, April 26 (Reuters) - DoubleLine Capital LP, the investment firm run by star bond manager Jeffrey Gundlach, said on Friday that it had completed an initial public offering for the closed-end DoubleLine Income Solutions Fund.

The fund, which Gundlach and portfolio managers Bonnie Baha and Luz Padilla will manage, raised $2.3 billion from the offering of 92 million common shares at $25 each. The fund trades on the New York Stock Exchange.

The managers plan to invest at least 80 percent of the fund's assets in debt securities and other fixed-income assets around the world, including in emerging markets, and may seek mortgage-backed securities of any kind or an unlimited amount of high-yield "junk" bonds.

The fund may also use leverage - or borrowed money - amounting to slightly more than 33 percent of its assets. It is the second closed-end fixed-income fund from DoubleLine after the DoubleLine Opportunistic Credit Fund, which raised $326 million from its offering in January 2012.

UBS Investment Bank, BofA Merrill Lynch, Citigroup, Morgan Stanley and Wells Fargo Securities were the lead underwriters of the fund's offering.

DoubleLine Capital LP is based in Los Angeles and has $59 billion in assets.

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