CDOs are on track to see a decline in issuance for the first time in six years. However, one small deal managed to get done. The proceeds of the deal will be used to build an interactive park in Puerto Rico aimed at teaching kids the benefits of recycling.
A $25 million CDO was completed Feb. 26. The selling agent on the deal was Oriental Financial Services, which used collateral from a CDO that Lehman Brothers underwrote. The underlying collateral includes a AAA'-rated $20.8 million note from Greystone CDO. The interest rate payable is 6.9% and matures in March 2023. The other collateral was a $4.2 million Fannie Mae strip, also AAA'- rated, that matures in Jan. 2023. The issuer was Punto Verde Grantor Trust.