© 2024 Arizent. All rights reserved.

John Hancock said to bring CBO via Lucent pension bonds

Details surfaced last week on a CDO from collateral manager John Hancock Mutual Life Insurance. The $325 million to $350 million deal is called Signature VI CDO, and will be placed by Morgan Stanley.

The transaction is said to be backed by rated corporate bonds and un-rated private placements. Timing is still uncertain and the debt class may not be launched until late September. Sources say the deal is structured with a triple-A class comprising roughly 80%, a single-A at 10%, and an equity tranche at 10% .

Interestingly, the bonds backing the deal were reportedly purchased by Hancock as part of Lucent Technology's pension fund, which the floundering technology firm wants back in cash, sources said.

For reprint and licensing requests for this article, click here.
MORE FROM ASSET SECURITIZATION REPORT