A little more than a year after European financial services giant Fortis Group launched its structured finance and CDO initiatives within the U.S., the company is preparing to issue its first CDO. Fortis Investments USA - the subsidiary of the European fund manager - will make its U.S. CDO market debut with the $1.5 billion Orient Point CDO Ltd., a cashflow deal backed primarily by RMBS. The deal is scheduled to close Oct. 25.
The $1.3 billion, triple-A rated A1 tranche has guidance set in the 27 basis point area over three-month Libor and the $99.3 million triple-A rated A2 tranche is being talked in the 45 basis point area over Libor. The $47 million double-A rated B class, has guidance set in the 60 basis point area over Libor. The $12 million of single-A rated C and class paper is making the rounds at 135 basis points over Libor and the $19 million single-A minus D class are talked in the 135 and 165 basis point areas over Libor, respectively. And the $14.5 million triple-B rated E class is being marketed in the 270 basis point area over Libor. Fortis will retain $16.5 million of an equity piece, which is about 1.1% of the deal.