Lehman Brothers is bringing to market a $300 million collateralized loan obligation for American Money Management called AMMC CLO I. One CDO source said it is a fairly vanilla CLO from a well-known manager. Calls to American Money Management officials were not returned and a Lehman banker declined comment.
The pipeline for leveraged-loan backed CDOs has been busy this year, as loan shops have looked to cash in on demand for the investment-grade notes backing the transactions.
The $371mm Grayston CLO II from Bear Stearns Asset Management reportedly priced last week. The triple-A tranche priced at LIBOR plus 38, which is in line with the spreads on similar deals. Credit Suisse Asset Management's latest deal, CSAM CLO IV, was increased from $425 million to $600 million on investor demand. Pricing on the top-rated part of the capital structure was LIBOR plus 38 basis points. Other managers looking to raise new deals include AIG Global Investment Group, Stone Tower Capital and The Carlyle Group.