Duke Street Capital, manager of a EURO800 million CDO--the largest on the continent to date-- is expected to launch the sale of the notes for the deal this week. A source close to the deal said CIBC World Markets will be coming to market with notes supporting the manager's Dutchess I CDO S.A. Pricing on the tranches could not be determined. The vehicle will comprise 65% loans and a 35% combination of mezzanine and high yield debt. The CDO is a regular cash-flow arbitrage deal launching into a market described by the source as favorable in terms of the spread differential between the assets and the bond debt.
Duke Street To Price Notes For Largest European CDO