Goldman Sachs is marketing the notes backing a collateralized loan obligation for Fidelity Investments, the second CLO the firm has led for the asset management giant. The $400 million deal is called Ballyrock CDO II and is a cash-flow arbitrage CLO. Last year, Goldman underwrote Ballyrock CDO I, also a $400 million CLO (LMW, 1/02). Officials at Goldman and Fidelity declined comment.
Goldman has been busy in recent months underwriting and marketing deals for loan managers. A source said the market was much tougher earlier this year and there were even rumors that Goldman was pulling out of leading CDOs, but the investment bank has built a good franchise and as the market has improved it has demonstrated increased commitment. Last month, Goldman hired Lisa Underwood from Société Générale for primary and secondary marketing of CDOs. She was previously head of the CDO origination group at SG until she left last December. She now reports to Bryan Mix and Eric Bothwell, said sources. A Goldman spokesman did not return calls for comment.
The firm is also leading a $300 million deal called Galaxy 2003 for insurance giant AIG (8/31) and recently priced the notes for The Carlyle Group's $300 million Carlyle Loan Opportunity Fund I, a CLO that will contain par, stressed and distressed loan assets. During the summer, Goldman led New York Life Investment Management's first cash flow CLO--the approximately $350 million deal called NYLIM Flatiron CLO 2003-1--and a debut deal for Lyon Capital Management, an arm of Credit Lyonnais that manages loan assets in structured vehicles (5/25).