Wachovia Securities has priced the debt for Callidus Capital Management's debut loan deal, a $300 million cash flow vehicle called Callidus Debt Partners CDO Fund II. The CLO uses the Wachovia APEX structure, which differs from traditional CDOs in that it includes three swaps entered into between Wachovia and the fund. The deal is also unusual in that the $246 million of AAA notes were wrapped by AMBAC Asset Assurance. The notes were priced at LIBOR plus 50 basis points, said a source. But the charge for the wrap from the insurer was not included in this, he said, and this will probably cost in the region of 20 basis points. Officials at Callidus declined comment until the vehicle closes at the end of this month.
Though Callidus has never managed a CLO before, the firm comprises some of the most experienced leveraged finance professionals in the business. Richard Ivers, a founder and managing director of Callidus, and co-founder Mavis Taintor, were managing directors in the leveraged finance group at Credit Suisse First Boston (LMW, 2/9). Taintor also worked at Salomon Smith Barney, where she started and ran the bank loan group with Ivers from 1996 to 1998.