Stanfield Capital Partners is seeking to put together a new $300 million collateralized loan obligation called Carrera CLO, joining a growing list of managers in the pipeline attempting to complete two deals in quick succession. The arbitrage cash-flow vehicle is being marketed and underwritten by Lehman Brothers and is still in the early stages of raising debt, said a banker familiar with the transaction. Officials at Stanfield and Lehman declined comment on the CLO.
Stanfield, which completed Quattro CLO earlier this year, is looking to raise debt alongside OppenheimerFunds subsidiary HarbourView Asset Management,Merrill Lynch Investment Management and Barclays Capital Asset Management. All three managers are coming to the table for the second time in a year. Sankaty Advisors, the fixed income outfit affiliated with Bain Capital, also scored twice this year by pricing notes for a $500 million collateralized loan obligation, Castle Hill INGOTS last month.
Though there are first time issuers in the pipeline, one CDO structurer stated, " Investors are focused on established managers, and Stanfield have been in the business for years and have a good platform." Led by managing partners Dan Baldwin, Stephen Alfieri and Christopher Jansen, the team at Stanfield managed one of the first CLO structures at Chancellor LGT in 1990.
Prospective tranches for the structure consist of a $231 million triple-A piece, an $18 million Single-A tranche, an $18.75 million Baa2/BBB piece and a $9.75 million Ba2/BB tranche. A $22.5 million equity piece completes the transaction. The weighted average life for the tranches is 8.5 years, 10.3 years, 10.3 years and 10.4 years, respectively, the banker said. A time for the issuing of the liabilities could not be determined and there is no hard price talk yet, said a banker.