Stanfield Capital Partners and OppenheimerFunds are both in the market buying up collateral for two new collateralized loan obligations. Stanfield is ramping up a new $300 million collateralized loan obligation after pricing notes on the deal at the end of last month and OppenhiemerFunds is in the market with a $350 million deal. Market sources said the Stanfield deal--Quattro CDO I--is a cash flow arbitrage structure. Stanfield is reportedly still in the market purchasing assets in the secondary market before official close next week. Chris Pucillo, portfolio manager at Stanfield, declined to comment. The deal is expected to have roughly an additional 15% of its collateral to ramp in the new issue market after it officially closes. Credit Suisse First Boston underwrote the liabilities which priced at the end of last month.
A banker at CSFB said the Standard & Poor's AAA-rated tranche priced at LIBOR plus 44 basis points, the A-rated tranche priced at LIBOR plus 150 basis points, and the BBB-rated tranche at LIBOR plus 230 basis points. The BB-rated tranche which was originally supposed to be all floating-rate notes was re-structured, noted the banker, who said a change was made to incorporate a fixed-rate tranche to satisfy an investor on the deal. Eight million of BBs were issued at LIBOR plus 700 basis points while another three million were issued at 10-year treasuries plus 800 basis points.
An official confirmed that OppenheimerFunds is in the market with Harbourview CDO IV, a deal collateralized with 90% leveraged loans and 10% high yield bonds. TD Securities underwrote the notes backing the deal last month and Deutsche Bank will act as trustee. The deal is expected to close by the end of this week, said the official, declining to be specific regarding the percentage of assets the firm is still ramping for the deal.