David L. Babson is officially purchasing Wachovia Corp.'s First Union Institutional Debt Management, Inc. (IDM) this summer, according to a company spokesman. Buyside sources said virtually all of IDM's CLOs have performed well and having David L. Babson take over the firm should be a smooth and agreeable change. IDM has issued seven CLOs since its formation in August 1998, aggregating approximately $4 billion of assets.

Babson will integrate IDM with its existing loan management professionals, and expects to maintain loan asset management and administration offices in New York City, Charlotte, N.C., and Springfield, Mass. The purchase is expected to be complete by the end of the second quarter.

"The IDM team is excited about the move to Babson," IDM President Tom Finke said in a prepared release. "IDM and Babson's loan businesses mesh well in terms of credit culture and management expertise. The strengths of the combined team will provide a platform for growth and success in the loan management business."

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