BlackRock Financial Management is preparing its second real estate collateralized debt obligation of the year--a $290 million deal set to price before Thanksgiving, says a CDO market official. The notes will be backed by a mix of 77% commercial mortgage-backed securities, 20% REITS and 3% commercial loans. The average rating in the collateral pool is double-B. Called Anthracite CDO II, the transaction is co-led by Deutsche Bank and Morgan Stanley. Calls to Brian Zeitlin, head of global CDOs at Deutsche Bank, and to Jon Strain, head of the CDO syndicate desk at Morgan Stanley, were not returned. Andrew Phillips, an MBS portfolio manager at BlackRock, did not return calls.
Price talk on the $153 million class, triple-A rated notes was LIBOR plus 55-57 basis points. Indicative pricing on the $40 million class B double-A notes was at 95-100 basis points over LIBOR. The $44 million class C notes rated single-A had a price talk of LIBOR plus 170-180 basis points.