Collateralized loan obligations for TCW and AIG Global Investment Group have priced in recent weeks, with both managers benefiting from the extremely favorable funding conditions.
Sources said the TCW deal, a $500 million CLO called First 2004-I, contained a $117 million triple-A tranche that was priced at LIBOR plus 35 basis points, the tightest execution seen in several years. However, the top-rated tranche was split into three sections, which also included a $245 million A-3 piece with a slightly longer tenor that priced at LIBOR plus 37 basis points. A $13 million slug with a nine-year tenor priced at LIBOR plus 55 basis points. J.P. Morgan arranged and underwrote the vehicle. Mark Gold, managing director at TCW, was offsite and did not return calls by press time.
Goldman Sachs led the AIG deal, which is called Galaxy III. This is the sixth leveraged-loan vehicle from AIG, which has just under $4 billion in par loan assets under management. An AIG portfolio manager was traveling and did not return calls by press time. Exact pricing of the notes could not be determined.