Levitt's Stone Tower Shop Scores Pricing Success

  • 29 Jun 2003
Email a colleague
Request a PDF

The notes for Stone Tower Capital's $325 million debut collateralized loan obligation, which contains a substantial number of Credit Suisse First Boston-led loans, have priced. A banker said Stone Tower is augmenting the deal with some additional buying of secondary loans, but amounts could not be determined. Stone Tower bought a pool of loans, both pro rata and institutional, from CSFB for the vehicle, which one buyer of CLO paper called, "very compelling, very different and very interesting" (LMW, 6/1).

Aside from the manager buying the loans primarily from CSFB, the deal is unusual in that the portfolio is already seasoned. Most CLOs buy paper in the primary. As a result, the notes and loans have a very short tenor. The $262.75 million Aaa/AAA tranche has a Weighted Average Life (WAL) of just 2.1 years. The top-rated tranche priced at LIBOR plus 48 basis points, which is significantly less expensive than other CLOs this year. The equity piece is $14.63 million. Mike Levitt, chairman of Stone Tower and previously a partner at Hicks, Muse, Tate & Furst, formed the asset management shop last year after 20 years involved in leveraged buyouts (1/12). Levitt did not return calls.

 

How It Priced
RatingTranche SizePricingWAL
Aaa/AAA$262.75 millionLIB+482.1
Aa2/AA$12 millionLIB+904.6
A3/A-$14.75 millionLIB+1604.9
Baa2/BBB$11.25 millionLIB+3005.1
Ba2/BB$4.75 million..
Ba3/BB-$4.88 million..
  • 29 Jun 2003

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 1,505.59 4 13.16%
2 SG Corporate & Investment Banking 1,292.64 1 11.30%
2 Rabobank 1,292.64 1 11.30%
4 Wells Fargo Securities 942.61 3 8.24%
5 Mizuho 875.48 2 7.65%