Barclays Capital is marketing Gulf Stream II, a $400 million collateralized loan obligation for Charlotte, N.C.-based Gulf Stream Asset Management, according to a source. This will be Gulf Stream's second CLO after Barclays priced the $300 million Compass CLO 2002-1 last year (LMW, 12/15). Price talk on the $310 million triple-A tranche is LIBOR plus 55 basis points and the deal is expected to price next month, a different source added. The CLO is substantially warehoused with loans in the BB range, he said.
Mark Mahoney, president of Gulf Stream, established Institutional Debt Management (IDM) and was head of the capital markets group at Wachovia Securities and First Union before founding Gulf Stream last year. He declined to comment on the deal. In an interview with LMW last December, Mahoney said the firm aims to launch a new deal ranging between $400-500 million every year, with a target of $3.5 billion in total for non investment-grade loan assets. While at IDM, Mahoney launched seven CLOs totaling $3.5 billion with each deal maintaining compliance and not suffering any downgrade activity while under his direction, according to a Standard & Poor's report on the firm.