Four Corners Capital Management, the L.A.-based loan management firm founded by Mike McAdams, has priced its debut collateralized loan obligation with the AAAs printing at LIBOR plus 30 basis points. According to J.P. Morgan’s global structured finance research team this is a record low, though veterans of the market said some deals went below the 30 level prior to the Russian crisis of 1998.
Four Corners CLO 2005-1 is a $305 million CLO that was arranged by Morgan Stanley. The AAA portion of the deal represents approximately 75% of the total structure. The equity piece is $27 million.
McAdams, president and ceo of Four Corners, declined comment. A Morgan Stanley spokesman did not return calls by press time. Since being founded in 2001, Four Corners has amassed more than $2.3 billion in assets through retail loan funds, four private funds and a portfolio of structured assets. Prior to Four Corners, McAdams was president, ceo and cio of ING Capital Advisors.