A high yield CLO takes the prize for being the first visible U.S. CDO issuance to price in 2004. Sources report Light Point I, a $409 million arbitrage cash flow vehicle, priced in line with spread talk last week.
Underwritten by Links Securities, the leverage loan-backed vehicle marks a first-time issue for manager LightPoint Capital. The following tranches priced against the three-month Libor: a 6.1-year $208 million triple-A class A-1 priced at 50 over; a 7.5-year $22 million triple-A class A-2 priced at 88 over; a 7.9-year $26 million double-A class B priced at 100 over; an 8.25-year, $8.5 million single-A class C priced at 175 over; an 8.25-year, $8.5 million triple-B class D priced at 300 over; and an 8.60-year, $11 million double-B class E priced at 750 over. A 4.10-year $22 million single-A class X priced over swaps with a 5.25% coupon.