On the heels of its U.S. counterpart's recent middle-market CLO issuance (ASR, 06/11/07), London-based European leveraged-loan manager Babson Capital Europe announced the close last week of a €500 million CLO, Malin CLO B.V.

The fund will invest in senior secured and mezzanine loans and will include a €100 million multicurrency revolver that can be drawn to buy either euro or sterling loans. The blended triple-A tranche priced at 21 basis points over Euribor and the double-B tranche priced at 340 basis points over Euribor. The fund was approximately 75% ramped at closing.

Goldman Sachsarranged the transaction with buyers that included European banks, asset and fund managers.

At the end of May, Babson Capital Europe managed more than €5.9 billion in nine CLO funds, one mezzanine fund, one credit opportunities fund, two managed accounts, and two warehouses. The firm is a wholly-owned indirect subsidiary of Babson Capital Management and has been investing in the loan market since 2001.

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