Four Corners Capital Management, a new shop run by some familiar names, has entered the market with its debut collateralized loan obligation since the fund's inception in September 2001. Market sources said the firm is ramping up a roughly $400 million deal that will be a cash flow arbitrage structure with leveraged loans as the majority of the collateral on the deal. Michael McAdams, who left ING Capital Advisors to head up the new fund, was unavailable for comment as he was said to be shopping the deal in New York.
The underwriter on the deal will be Canadian Imperial Bank of Canada and issuance of liabilities to back the deal is expected in the next few weeks, said one banker. Officials at CIBC did not return calls by press time. The deal is now slated with a $290 million triple-A tranche and a $29 million triple-B tranche. The equity expected to be raised for the deal will be roughly $32 million. Equity investors could not be determined by press time. Before starting his new fund, McAdams spent six years as president and chief executive officer at ING. He was one of the original dedicated players in the loan investment market dating back to his days as portfolio manager at Pilgrim Investments. His new fund is part of a financial partnership with Australian-based firm, Macquarie Holdings.