Wachovia Securities has priced the notes backing a David L. Babson & Company collateralized loan obligation and increased the size of the deal to $350 million from $341 million, according to market sources. There is a $150 million triple-A tranche priced at LIBOR plus 53 basis points with a maturity of 6.66 years and two other top-rated tranches totaling $110 million with longer maturities, the source noted. Pricing could not be ascertained on these tranches. A $15 million AA piece was increased to $20 million, with pricing of LIBOR plus 100 basis points. The $10 million BB tranche was downsized to $7 million and carries pricing of LIBOR plus 825 basis points. The equity piece is $28 million, the source noted.
The loan vehicle is the first one since Babson completed the acquisition of Wachovia's institutional leveraged loan asset management business, First Union Institutional Debt Management. Portfolio manager Tom Finke did not return calls for comment. Officials at Wachovia declined comment.