Anthracite Capital priced a $249.5 million CDO last week to serve as a matched term funding source for a $478 million portfolio of two recently purchased CMBS deals and REIT debt. The CDO is the fifth for Anthracite, a REIT that invests in high-yield CMBS and is managed by BlackRock Financial Management.
The two CMBS transactions carried a purchase price of $66.8 million, 59% of the total par amount of $113.3 million, according to Anthracite. Anthracite plans to use a ramp-up facility to finance up to $100 million of additional high yield CMBS to be acquired over the next nine months. Anthracite will retain the triple-B minus rated class of the CDO, as well as $115 million of par value non-investment grade debt and all of the deal's preferred shares. The weighted average cost of funds for bonds issued by the CDO is being estimated at 5.40%.