Goldman Sachs has issued the red herrings to potential investors in The Carlyle Group's latest loan fund--a $300 million vehicle named Carlyle Loan Opportunity Fund I--that will purchase par, stressed and distressed loan assets, said a banker. The focus is on the non-investment grade bank loan market and is designed for Carlyle to buy loans in the 85-95 range (LMW, 6/9). The red herrings are the first draft of the offering circular and to price talk on the deal will follow shortly, he added. Officials at Carlyle did not return calls and a Goldman banker declined comment.
Recent deals such as the triple-A tranche for New York Life Investment Management's NYLIM Flatiron CLO priced at LIBOR plus 55 basis points and the spread is likely to be in this "ZIP code," the banker said. The deal is unusual but has similarities to GoldenTree Asset Management's GoldenTree Loan Opportunities Fund series, which can also invest across the credit spectrum, a source said. Morgan Stanley priced the GoldenTree deal last month with the triple-A tranche at LIBOR plus 55 basis points (6/30). Carlyle is an established manager and so pricing should be within similar levels, the banker noted.