Deerfield Capital Management, the Chicago-based fixed income specialist, is on the road with a new $300 million collateralized loan obligation called Forest Creek 2003-1. Bear Stearns is the lead arranger for the cash-flow arbitrage deal, which comprises leveraged loans, said a banker. Questions regarding Forest Creek were referred to Jon Trutter, Deerfield's CIO, who declined comment citing the private nature of the deal. A banker at Bear also declined comment.
Price talk on the approximately $230 million Triple-A tranche is LIBOR plus 55 basis points, which is within the spreads seen in recent months, said a source.