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Heavyweights Seen Coming Back To Market

16 Nov 2003

Two major names are close to raising debt for collateralized loan obligations. Bain Capital affiliate Sankaty Advisors is in the market via J.P. Morgan with the $500 million Avery Point CLO.

Two major names are close to raising debt for collateralized loan obligations. Bain Capital affiliate Sankaty Advisors is in the market via J.P. Morgan with the $500 million Avery Point CLO. Merrill Lynch, meanwhile, is said to be close to pricing the notes backing a CLO for Prudential Financial's leveraged bank loan group. The Prudential CLO is called Dryden 5 and is set to be approximately $350 million, according to a source. Ross Smead, portfolio manager for Prudential's leveraged bank loan division, declined to comment. Price talk on the triple-A notes is within the LIBOR plus 55 basis points level, said the source. This will be Prudential's second CLO this year, with UBS bringing the $349 million Dryden 4 to market in August. A Merrill spokesman also declined comment. Sankaty managing director Jonathan Lavine did not return calls.

16 Nov 2003