The Banc of America led $500 million Endeavor distressed loan/ABS CDO to be managed by PPM America has returned to the market, after being postponed due to the events of Sept. 11. The $100 million 1.5-year triple-A A1-class is being talked at 45 to 50 basis points over three-month Libor, according to IFR Asset-Backed Securities.
Meanwhile, the $200 million, 1.5-year triple-A revolving A2-class is expected to launch wider than the A1, with one investor speculating an additional 20 basis points. The subordinate notes are not being offered.
The deal is 60% backed by distressed loans, said to be originated by BofA, and 40% backed by ABS, providing current cashflow. PPM manages $42 billion in U.S. assets and is an indirect, wholly owned subsidiary of London based Prudential Portfolio Managers Ltd.
