Bevy Of Loan Managers Score CLO Successes

A slew of loan managers priced collateralized loan obligations in the last two weeks, all benefiting from strong investor demand.

  • 13 Aug 2004
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A slew of loan managers priced collateralized loan obligations in the last two weeks, all benefiting from strong investor demand. Bear Stearns priced Octagon Credit Investors' latest $400 million collateralized loan obligation, Octagon CLO VII. Pricing on the triple-A tranche was LIBOR plus 36 basis points with a portfolio manager noting there is aggressive pricing throughout the structure. Cheaper financing improves the arbitrage and increases equity returns.

James Ferguson, who founded Octagon in 1994 and portfolio manager Michael Nechamkin will manage the vehicle. Ferguson and portfolio manager Andy Gordon manage funds V and VI. Octagon officials declined comment.

Banc of America Securities came to market with an approximately $300 million deal for Flagship Capital Management. Pricing on the triple-A tranche was LIBOR plus 36, along with the current market, another portfolio manager noted. The vehicle is called Flagship CLO II (LMW, 7/12). Flagship is a loan subsidiary of B of A and the lead portfolio manager is Ty Anderson. Flagship officials declined comment.

Credit Suisse First Boston, meanwhile, is issuing notes for Nomura Corporate Research and Management. The approximately $350 million deal is called Clydesdale CLO 2004. The $255 million triple-A tranche is priced at LIBOR plus 35 basis points. Officials at Nomura did not return calls by press time.

Finally, Rabobank was able to raise its debut $300 million collateralized loan obligation late last month. Greenwich RBC Capital is lead arranger and Rabobank is co-arranger and asset manager. The vehicle will be 75% ramped-up by closing on Aug. 17. Officials at Rabobank and RBC declined comment. Rabobank's CLO unit is led by industry veteran E.A. Kratzman.

  • 13 Aug 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 5,997 17 15.40
2 Citi 4,679 16 12.02
3 Lloyds Bank 3,158 6 8.11
4 Bank of America Merrill Lynch (BAML) 3,104 10 7.97
5 Morgan Stanley 3,066 8 7.88

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 70,341.11 234 10.46%
2 JPMorgan 64,579.62 197 9.60%
3 Bank of America Merrill Lynch 51,474.08 169 7.65%
4 Wells Fargo Securities 51,322.59 157 7.63%
5 Credit Suisse 47,533.25 150 7.07%