The Blackstone Group is said to be in the market raising debt for a $1 billion cash flow arbitrage collateralized loan obligation called Monument Park. UBS is reportedly the underwriter on the transaction, sources said. Spokespeople for the private equity firm and the bank declined comment. The deal would be unusual for its sheer size. Most CLOs in the last two years have hovered around the $300-500 million mark.
A source said the CLO has an extremely long ramp-up period that will ease concerns about finding assets in this current low-yield environment. One source said the deal will have a comparatively small amount of assets at the ramp-up level and then will have 18 months after closing to complete the portfolio.
Dean Criares joined Blackstone at the beginning of 2002 from Trimaran Advisors. That year the firm completed its debut deal, the $600 million Hanover Square CLO with CIBC World Markets and J.P. Morgan. The second deal, completed earlier this year was the more modest $400 million Union Square CLO, led by Credit Suisse First Boston. The $291 million triple-A tranche on Union Square priced at LIBOR plus 53 basis points.