Lyon Capital Management, an arm of Credit Lyonnais that manages loan assets in structured vehicles, is in the market with a new collateralized loan obligation. Goldman Sachs and Credit Lyonnais are joint underwriters for the $325 million cash-flow arbitrage vehicle called LCM Limited Partnership I, said a source. Krishna Chauhan, an official at Lyon, declined comment. A CDO banker at Goldman Sachs and officials within Credit Lyonnais' asset securitization group did not return calls. The firm also completed its $400 million Lyon Capital CLO last year, brought to market via Goldman Sachs.
Price talk on the $201 million triple-A tranche is LIBOR plus 55 basis points, while a $35 milliont triple-A piece is said to have been pre-placed. A $17 million double-A tranche is being talked in the LIBOR plus 110 basis points range. Price talk on an $11.5 million A tranche is LIBOR plus 190 and on the $30 million triple-B tranche it is LIBOR plus 350 basis points. The equity piece is $30 million.