The Carlyle Group is putting together Carlyle High Yield Partners VI, a collateralized loan obligation that will invest in B1/Ba3 credits. The approximately $333 million deal is in the pipeline, though the structure is not finalized, said a source. An official within Carlyle's high-yield team declined to comment. Wachovia Securities is underwriting the notes for the transaction. A Wachovia spokesman said the bank does not comment on any deals it may be marketing.
Spreads on CLO liabilities have been tightening significantly in the last few months (LMW, 2/23) and price talk on the senior notes for Carlyle's sixth loan fund is LIBOR plus 48 basis points. CDO analysts have indicated that spreads are likely to get even tighter. The last loan deal that Carlyle completed was Carlyle Loan Opportunity Fund, a $300 million CLO that invested in par, stressed and distressed assets (6/9). Goldman Sachs underwrote that deal.