Barclays Prices Debut Gulf Stream CLO

Barclays Capital has priced the notes for Gulf Stream Asset Management's Compass CLO 2002-1, a $300 million collateralized loan obligation. Gulf Stream is a new asset management firm founded by Mark Mahoney, who previously established Institutional Debt Management (IDM) and was head of the capital markets group at Wachovia Securities and First Union. One CLO manager said he was impressed with Gulf Stream's showing, noting that he perceived Mahoney as a not "in the trenches guy" at IDM, where he was more of a top boss. He also said Barclays' involvement is extremely welcome, because it is another underwriter that can find investors.

Gulf Stream originally planned for a $400 million vehicle, but downsized the CLO in order to make the debut deal go smoother, explained Mahoney. The deal is over 50% warehoused. The notes priced either at the same level or within current CDO spreads, with Mahoney attributing this to Barclays' strong effort and "people liking the loan asset class." The last CLO to price was Stanfield Capital Partners' $300 million Carrera CLO (LMW, 12/9). The Triple-As also priced at LIBOR plus 58 basis points, but the Triple-Bs for Carrera priced at LIBOR plus 350 basis points. A Barclays CDO banker declined comment, noting the deal does not close until Dec. 19.