Bear Stearns Prices Landmark Aladdin Deal

Bear Stearns has priced a $319 million collateralized loan obligation for Aladdin Capital Management . The vehicle is called Landmark III and is Aladdin's third CLO. The manager has acquired about 85% of its assets already, said a source. The ramp-up for the portfolio began in March, and though the recent spread tightening caused by the repricings has impacted the portfolio, there are some higher-yielding assets in there, the source noted.

The triple-A notes are split into three tranches to suit different investor appetite. There is a super-senior tranche and then two more junior tranches. The most senior-tranche is priced at LIBOR plus 55 basis points. The other two tranches have slightly higher pricing, the source said, but the exact spreads could not be determined. The top-rated tranches are for $237 million and priced within expectations, the source noted. But the lower-rated tranches are a little wider than anticipated. Officials at Aladdin declined comment. Aladdin is a Stamford, Conn. and Tokyo-based asset management firm with over $2.35 billion in assets.