Stanfield Capital Partners is preparing to launch a structured investment vehicle (SIV) that will be able to issue up to USD4 billion in term debt and use derivatives to manage interest-rate and foreign exchange risk, according to an investor who has seen preliminary marketing materials. Officials at Stanfield Capital in New York declined all comment.
The SIV, dubbed Stanfield Victoria Finance, will issue USD200 million of hybrid securities--with a stated maturity of 10 years--that pay a coupon of LIBOR plus 250 basis points plus whatever excess return the manager generates. Stanfield can then leverage its capital up to 20 times through issuing commercial paper or medium-term notes and use the proceeds to actively trade the fixed income market. Stanfield Capital has signed on Credit Suisse First Boston to underwrite the USD200 million issue. An official at CSFB confirmed the plans, declining further comment.
The SIV was previously known as Granite Funding but has renamed following Stanfield's recent acquisition of asset manager Ceres Capital, according to a banker.
