American Capital Access of New York has priced its second managed synthetic investment CDO this year - ACA CDS 2002-1 IG CDO - at 55 basis points over the three-month Libor on the triple-A rated notes. The ACA CDS is a five-year average life, non-PIKable bullet with a six-year legal final maturity. The transaction has a total size of $1.026 billion, including the super senior credit default swap tranche and interest-only class - leaving $100.5 million in funded notes. UBS Warburg underwrote the latest issue, while Commerzbank did ACA's first investment-grade deal in February.
Major selling points on the latest CDO were the deal's high diversity score target of 57 (versus a frequent score of 38 to 42), a minimum of 100 different obligor names, and a pool of solid, investment-grade names, buysiders said. ACA apparently is taking 50% of the equity and 100% of the $48 million interest-only tranche.
Meanwhile, ACA has announced debt marketing levels on their inaugural $402.5 million arbitrage cashflow structured finance CDO via Credit Suisse First Boston, slated to print during the week of June 24, buysiders said. ACA is a co-manager on the deal. Price talk on the ABS CDO is 53 to 55 basis points over the three-month Libor on the 7.6-year average life, triple-A-rated notes. The Baa2' average pool is composed of ABS, CMBS, and RMBS.
The structured finance portfolio investment team at American Capital Access is headed by Chris Skardon, and Joe Pimbley is the lead portfolio manager for investment-grade corporates - both are managing directors. ACA aims to issue approximately four CDOs per year backed by investment-grade corporates and structured finance. Neither the issuer nor the underwriters could be reached for comment.