Goldman Sachs has priced the notes backing Fidelity Investments' second collateralized loan obligation, while J.P. Morgan has priced the notes backing INVESCO's Sagamore I, according to CDO sources. The $400 million Fidelity CLO is called Ballyrock CDO II. A banker familiar with the deal said the $290 million Aaa/AAA notes were priced at LIBOR plus 53 basis points, which is well within levels seen on deals in the last few months. He noted there was decent demand for the manager and increasing the deal was a consideration. Officials at Goldman and Fidelity declined comment.
The top-rated tranche on the $302 million Sagamore CLO was priced at LIBOR plus 54 basis points, according to a different source. Anthony Clemente, managing director and head of the high-yield investments group at INVESCO, did not return immediate calls for comment.
Last year, Goldman underwrote Ballyrock CDO I, a $400 million CLO (LMW, 1/02). Goldman is also leading a $300 million deal called Galaxy 2003 for insurance giant AIG (8/31). The banker said this is likely to price at the end of November or beginning of December.