Deutsche Bank has priced the notes backing Angelo Gordon & Co.'s fourth cash flow collateralized loan obligation, the $507 million Northwoods Capital IV. According to a source, the $260 million triple-A notes priced at LIBOR plus 40 basis points and the triple-B notes priced at LIBOR plus 260 basis points. John Fraser, the portfolio manager at Angelo Gordon focused on leveraged loans, did not return calls.
Approximately 45% of the collateral is expected to be purchased at the closing date with the transaction having a nine-month closing period, notes Standard & Poor's. The transaction will be 95% leveraged loans, but there will be a 5% bucket for fixed-rate bonds. The weighted average spread will be 3% and the minimum weighted average spread will be 21/2%.