The Carlyle Group closed a $510 million CLO, its second in a year, the private equity firm said in statement.
The deal, dubbed Carlyle Global Market Strategies CLO 2012-1, was arranged by Wells Fargo Securities and Mitsubishi UFJ Securities and slightly upsized from its original $494.2 million. It contains a $320 million triple-A rated tranche priced at Libor plus 142 bps, according to a March 27 report by Fitch Ratings.
Notably, the deal was launched earlier this month, meaning it had in the neighborhood of a three-week turnaround time. Market participants have noted that deals have begun to move much quicker, after quite a number of them last year were stalled for several months. A Carlyle representative did not respond to a request for comment.
Meanwhile, Citigroup is said to be raising a CLO with a target size of $400 million to be managed by Silvermine Capital Management. That fund includes a $266.75 million triple-A-rated tranche, according to Bloomberg.
A Citigroup representative declined to comment.
The Carlyle deal, an arbitrage cash-flow CLO with a four-year reinvestment period, closely resembles other recently issued CLOs, according to Fitch, although the length of the reinvestment period is at the higher end of the range. At closing, approximately 70% of the portfolio was purchased, with the remainder to be bought during the 90-day ramp-up period.
The fund is the private equity firm’s thirty-third and its first new issue for 2012. Carlyle's last CLO fund closed in July 2011 at $507 million.
The firm manages a total of $16 billion CLOs. Since August 2010, the firm has added $10.5 billion in CLO assets, through the acquisition of funds or management contracts from Highland Capital Management, Stanfield Capital Partners, Mizuho Alternative Investments, Foothill Group and Churchill Financial, as well as the closing of the 2011 CLO.