Centre Pacific, an investment management firm that focuses exclusively on collateralized debt obligations, will price its second CDO as early as this week, sources said.
Called Sierra CLO I, the $400 million cash-flow deal will be backed by leveraged loans. Banc of America Securities and CIBC World Markets are underwriters on the offering.
Centre's first deal, a collateralized bond obligation called Rainier CBO I, closed on July 18. The $400 million cash-flow CBO is backed by high-yield bonds. Bear, Stearns & Co. was the lead underwriter on the deal. Fitch, Moody's Investors Service, and Standard & Poor's Ratings Services all rated the transaction.
Centre Pacific was formed early this year and is staffed by the former CDO group (led by Heather Creeden) of TransAmerica Investment Services, which was acquired by Aegon USA Investment Management late last year. Centre Pacific, which is located in Los Angeles, is majority owned by Centre Partners Management, a New York-based private equity firm.
Separately, last week Bear Stearns and CIBC were showing investors a $400 million CDO called BranPoint. Sankaty Advisors, a unit of Bain Capital, is the collateral manager for the transaction, which is backed 80% by bonds and 20% by loans, according to published reports.
The seven-part transaction is made up of four triple-A-rated A-classes, and two triple-B-rated B-classes, plus a non-rated equity piece.