Goldman Sachs has priced a $300 million collateralized loan obligation for AIG SunAmerica, with the all-in cost of liabilities among the lowest of 2003. The vehicle is called Galaxy CLO 2003-1 and is AIG's fifth CLO.
The $232.5 million triple-A notes were priced at LIBOR plus 52 basis points, which is not as tight as the spreads seen on recent triple-A tranches for rivals such as Oak Hill Advisors' (LMW, 12/8) or Sankaty Advisors (12/15). But a source familiar with the deal said when evaluating the pricing it is important to look at the overall capital structure. "This deal has a lot more triple-A than other deals," he added. "You need to look at what the weighted average cost of pricing [is], not prices of individual tranches." The deal is priced at LIBOR plus 70 basis points all-in, which is possibly the lowest priced deal of 2003, according to the source.
The $13.5 million A2 is priced at LIBOR plus 155 basis points. The Baa2 notes are split into two tranches--a fixed rate $9.5 million piece and a floating-rate $14.5 million tranche. Both are priced at LIBOR plus 3%. The loans have been bought throughout the year and the vehicle is presently 80% ramped up, the source said. Officials at AIG and Goldman declined comment.