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.